Redwood Trust (RWT) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	One Belvedere Place,
Entity Address, Address Line Two	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		114,674,962
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
ASSETS
Real estate securities, at fair value	[1]	$ 353,286	$ 344,125
Other investments	[1]	422,366	348,175
Cash and cash equivalents	[1]	556,989	461,260
Restricted cash	[1]	88,717	83,190
Intangible assets	[1]	45,246	56,865
Derivative assets	[1]	51,103	53,238
Other assets	[1]	162,193	130,588
Total Assets	[1]	13,072,714	10,355,066
Liabilities
Short-term debt, net	[1]	1,750,941	522,609
Derivative liabilities	[1]	10,972	16,072
Accrued expenses and other liabilities	[1]	251,576	179,340
Asset-backed securities issued (includes $7,756,101 and $6,900,362 at fair value), net	[1]	8,183,825	7,100,661
Long-term debt, net	[1]	1,499,577	1,425,485
Total liabilities	[1]	11,696,891	9,244,167
Commitments and Contingencies	[1]
Equity
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 114,661,762 and 112,090,006 issued and outstanding	[1]	1,147	1,121
Additional paid-in capital	[1]	2,312,272	2,264,874
Accumulated other comprehensive income (loss)	[1]	1,923	(4,221)
Cumulative earnings	[1]	1,272,845	997,277
Cumulative distributions to stockholders	[1]	(2,212,364)	(2,148,152)
Total equity	[1]	1,375,823	1,110,899
Total Liabilities and Equity	[1]	13,072,714	10,355,066
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	1,495,079	176,641
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,721,389	4,072,410
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	466,346	245,394
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,227,209	3,890,959
Multifamily loans
ASSETS
Fair value of loans	[1]	$ 482,791	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
ABS issued, net, Fair value		$ 7,756,101	$ 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)		114,661,762	112,090,006
Common stock, outstanding (shares)		114,661,762	112,090,006
Assets	[1]	$ 13,072,714	$ 10,355,066
Liabilities	[1]	11,696,891	9,244,167
Variable Interest Entity, Primary Beneficiary
Assets		9,358,317	8,141,069
Liabilities		$ 8,391,761	$ 7,348,713
[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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest Income
Residential loans	$ 53,993	$ 44,921	$ 146,081	$ 179,331
Business purpose loans	67,129	55,637	201,640	161,710
Multifamily loans	4,846	4,918	14,492	49,960
Real estate securities	14,242	10,135	33,184	38,471
Other interest income	5,512	6,371	17,325	20,537
Total interest income	145,722	121,982	412,722	450,009
Interest Expense
Short-term debt	(11,826)	(5,145)	(30,794)	(45,119)
Asset-backed securities issued	(73,732)	(66,514)	(222,712)	(232,316)
Long-term debt	(18,196)	(28,752)	(60,865)	(72,313)
Total interest expense	(103,754)	(100,411)	(314,371)	(349,748)
Net Interest Income	41,968	21,571	98,351	100,261
Non-interest Income (Loss)
Mortgage banking activities, net	63,163	59,395	200,189	24,511
Investment fair value changes, net	26,077	107,047	120,644	(611,557)
Other income, net	2,388	(114)	8,357	3,979
Realized gains, net	6,703	602	17,803	30,419
Total non-interest income (loss), net	98,331	166,930	346,993	(552,648)
General and administrative expenses	(47,692)	(27,630)	(131,837)	(84,832)
Loan acquisition costs	(4,621)	(2,158)	(11,928)	(7,716)
Other expenses	(4,023)	(7,788)	(12,104)	(104,286)
Net Income (Loss) before (Provision for) Benefit from Income Taxes	83,963	150,925	289,475	(649,221)
Benefit from (provision for) income taxes	4,323	(9,113)	(13,907)	13,079
Net Income (Loss)	$ 88,286	$ 141,812	$ 275,568	$ (636,142)
Basic earnings (loss) per common share (in dollars per share)	$ 0.75	$ 1.21	$ 2.36	$ (5.60)
Diluted earnings (loss) per common share (in dollars per share)	$ 0.65	$ 1.02	$ 2.03	$ (5.60)
Basic weighted average shares outstanding (in shares)	112,995,847	113,403,102	112,754,691	113,952,308
Diluted weighted average shares outstanding (in shares)	141,855,471	141,969,977	141,575,385	113,952,308

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 88,286	$ 141,812	$ 275,568	$ (636,142)
Other comprehensive income (loss):
Net unrealized (loss) gain on available-for-sale securities	(2,658)	8,236	19,552	(19,890)
Reclassification of unrealized (gain) loss on available-for-sale securities to net income	(6,200)	(445)	(16,495)	(11,525)
Net unrealized loss on interest rate agreements	0	0	0	(32,806)
Reclassification of unrealized loss on interest rate agreements to net income	1,041	1,040	3,087	2,148
Total other comprehensive (loss) income	(7,817)	8,831	6,144	(62,073)
Total Comprehensive Income (Loss)	$ 80,469	$ 150,643	$ 281,712	$ (698,215)

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)	(636,142)				(636,142)
Other comprehensive income (loss)	(62,073)			(62,073)
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)		248,533
Employee stock purchase and incentive plans	(2,765)	$ 2	(2,767)
Non-cash equity award compensation	11,146		11,146
Share repurchases (in shares)		(3,047,335)
Share repurchases	(21,659)	$ (30)	(21,629)
Common dividends declared	(67,821)					(67,821)
Ending balance (in shares) at Sep. 30, 2020		111,904,322
Balance at End of Period at Sep. 30, 2020	1,053,464	$ 1,119	2,261,911	(20,560)	942,982	(2,131,988)
Beginning balance (in shares) at Jun. 30, 2020		114,940,197
Balance at beginning of period at Jun. 30, 2020	936,576	$ 1,149	2,279,625	(29,391)	801,170	(2,115,977)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	141,812				141,812
Other comprehensive income (loss)	8,831			8,831
Employee stock purchase and incentive plans (in shares)		11,460
Employee stock purchase and incentive plans	9		9
Non-cash equity award compensation	3,906		3,906
Share repurchases (in shares)		(3,047,335)
Share repurchases	(21,659)	$ (30)	(21,629)
Common dividends declared	(16,011)					(16,011)
Ending balance (in shares) at Sep. 30, 2020		111,904,322
Balance at End of Period at Sep. 30, 2020	1,053,464	$ 1,119	2,261,911	(20,560)	942,982	(2,131,988)
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)	275,568				275,568
Other comprehensive income (loss)	6,144			6,144
Issuance of common stock (in shares)		2,391,777
Issuance of common stock	33,200	$ 24	33,176
Employee stock purchase and incentive plans (in shares)		179,979
Employee stock purchase and incentive plans	(534)	$ 2	(536)
Non-cash equity award compensation	14,758		14,758
Common dividends declared	(64,212)					(64,212)
Ending balance (in shares) at Sep. 30, 2021		114,661,762
Balance at End of Period at Sep. 30, 2021	1,375,823	$ 1,147	2,312,272	1,923	1,272,845	(2,212,364)
Beginning balance (in shares) at Jun. 30, 2021		113,052,780
Balance at beginning of period at Jun. 30, 2021	1,295,142	$ 1,131	2,287,412	9,740	1,184,559	(2,187,700)
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	88,286				88,286
Other comprehensive income (loss)	(7,817)			(7,817)
Issuance of common stock (in shares)		1,585,709
Issuance of common stock	19,826	$ 16	19,810
Employee stock purchase and incentive plans (in shares)		23,273
Employee stock purchase and incentive plans	153		153
Non-cash equity award compensation	4,897		4,897
Common dividends declared	(24,664)					(24,664)
Ending balance (in shares) at Sep. 30, 2021		114,661,762
Balance at End of Period at Sep. 30, 2021	$ 1,375,823	$ 1,147	$ 2,312,272	$ 1,923	$ 1,272,845	$ (2,212,364)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.21	$ 0.14	$ 0.55	$ 0.585

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020
Cash Flows From Operating Activities:
Net Income (Loss)		$ 275,568	$ (636,142)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of premiums, discounts, and securities issuance costs, net		300	6,213
Depreciation and amortization of non-financial assets		12,674	13,166
Originations of held-for-sale loans		(960,419)	(654,820)
Purchases of held-for-sale loans		(9,902,028)	(2,893,246)
Proceeds from sales of held-for-sale loans		6,948,264	3,224,526
Principal payments on held-for-sale loans		49,619	53,677
Net settlements of derivatives		27,412	(187,130)
Non-cash equity award compensation expense		14,758	11,146
Goodwill impairment expense		0	88,675
Market valuation adjustments		(292,056)	606,764
Realized gains, net		(17,803)	(30,419)
Net change in:
Accrued interest receivable and other assets		(9,680)	304,147
Accrued interest payable and accrued expenses and other liabilities		73,120	(82,489)
Net cash used in operating activities		(3,780,271)	(175,932)
Cash Flows From Investing Activities:
Originations of loan investments		(557,327)	(327,494)
Purchases of loan investments		(35,713)	0
Proceeds from sales of loan investments		9,484	1,574,160
Principal payments on loan investments		1,950,151	1,652,418
Purchases of real estate securities		(29,342)	(106,422)
Sales of securities held in consolidated securitization trusts		8,197	142,990
Proceeds from sales of real estate securities		37,500	634,709
Principal payments on real estate securities		46,904	19,446
Purchases of servicer advance investments		0	(179,419)
Principal repayments from servicer advance investments		58,248	83,124
Purchases of home equity investment contracts		(109,174)	(986)
Other investing activities, net		(15,915)	22,019
Net cash provided by investing activities		1,363,013	3,514,545
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		9,847,178	3,981,572
Repayments on short-term debt		(8,443,664)	(5,828,972)
Proceeds from issuance of asset-backed securities		2,822,785	1,343,845
Repayments on asset-backed securities issued		(1,549,766)	(1,037,546)
Proceeds from borrowings on long-term debt		948,674	1,251,850
Repayments on long-term debt		(1,055,475)	(2,640,007)
Net settlements of derivatives		0	(84,336)
Net proceeds from issuance of common stock		20,248	5,791
Net payments on repurchase of common stock		0	(21,659)
Taxes paid on equity award distributions		(957)	(3,009)
Dividends paid		(64,212)	(67,821)
Other financing activities, net		(6,297)	(4,876)
Net cash provided by (used in) financing activities		2,518,514	(3,105,168)
Net increase in cash, cash equivalents and restricted cash		101,256	233,445
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]	645,706	524,278
Cash paid during the period for:
Interest		298,507	364,875
Taxes		28,092	218
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		9,375	46,560
Retention of mortgage servicing rights from loan securitizations and sales		7,065	0
Deconsolidation of multifamily loans held in securitization trusts		0	(3,849,779)
Deconsolidation of multifamily ABS		0	(3,706,789)
Transfers from loans held-for-sale to loans held-for-investment		3,005,041	770,754
Transfers from loans held-for-investment to loans held-for-sale		44,922	0
Transfers from residential loans to real estate owned		21,655	12,547
Transfers from long-term debt to short-term debt		93,150	0
Right-of-use asset obtained in exchange for operating lease liability		1,135	5,362
Reduction in operating lease liability due to lease modification		0	1,466
Issuance of common stock for 5 Arches acquisition		$ 13,375	$ 3,375
[1]	Cash, cash equivalents, and restricted cash at September 30, 2021 includes cash and cash equivalents of $557 million and restricted cash of $89 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		Sep. 30, 2021	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Cash and cash equivalents	[1]	$ 556,989	$ 461,260
Restricted cash	[1]	$ 88,717	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Organization

Organization	9 Months Ended
	Sep. 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 generally 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	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at September 30, 2021 and December 31, 2020, and for the three and nine months ended September 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 September 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 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 during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest single-family rental and bridge loans ("CAFL"), and beginning in the third quarter of 2021, an entity ("Point HEI") formed in connection with the securitization of home equity investment contracts ("HEIs"). 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 certain entities we are exposed to financial risks associated with our role as a sponsor or co-sponsor, servicing administrator, collateral 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, the underlying single-family rental and bridge loans at the consolidated CAFL entities are shown under Business purpose loans held-for-investment at fair value, and the underlying HEIs at the consolidated Point HEI entity are shown under Other investments 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 fair value changes, 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 September 30, 2021. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at September 30, 2021 Carrying Value at September 30, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (12,672) $ 32,628 7 Broker network 18,100 (9,352) 8,748 5 Non-compete agreements 9,500 (6,806) 2,694 3 Tradenames 4,000 (2,861) 1,139 3 Developed technology 1,800 (1,763) 37 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (36,054) $ 45,246 6 All of our intangible assets are amortized on a straight-line basis. For both of the nine months ended September 30, 2021 and 2020, we recorded intangible asset amortization expense of $12 million. Estimated future amortization expense is summarized in the table below. Table 2.2 – Intangible Asset Amortization Expense by Year (In Thousands) September 30, 2021 2021 (3 months) $ 3,685 2022 12,800 2023 10,091 2024 7,073 2025 and thereafter 11,597 Total Future Intangible Asset Amortization $ 45,246 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 September 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	9 Months Ended
	Sep. 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 nine months ended September 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 August 2021, the FASB issued ASU 2021-06, "Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants (SEC Update)." This new guidance aligns certain SEC paragraphs in the codification with new SEC rules issued in May 2020 related to changes to the disclosure requirements for acquired and disposed businesses. We adopted this guidance upon issuance in the third quarter of 2021, which did not have a material impact on our consolidated financial statements. 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 September 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 September 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 September 30, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 33,628 $ — $ 33,628 $ (74) $ (32,408) $ 1,146 TBAs 8,213 — 8,213 (4,278) (3,117) 818 Total Assets $ 41,841 $ — $ 41,841 $ (4,352) $ (35,525) $ 1,964 Liabilities (2) Interest rate agreements $ (74) $ — $ (74) $ 74 $ — $ — TBAs (7,599) — (7,599) 4,278 3,321 — Futures (749) — (749) — 749 — Loan warehouse debt (1,335,464) — (1,335,464) 1,335,464 — — Security repurchase agreements (79,766) — (79,766) 79,766 — — Total Liabilities $ (1,423,652) $ — $ (1,423,652) $ 1,419,582 $ 4,070 $ — 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 ("Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet") 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	9 Months Ended
	Sep. 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 September 30, 2021, we consolidated Legacy Sequoia, Sequoia, CAFL, Freddie Mac SLST, Freddie Mac K-Series, and Point HEI 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 certain securitizations, we are exposed to financial risks associated with our role as a sponsor, servicing administrator, collateral administrator, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. 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 September 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 non-controlling 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. During the third quarter of 2021, we consolidated a Point securitization entity formed to invest in Point HEIs that we determined was a VIE and for which we determined we were the primary beneficiary. At September 30, 2021, we owned a portion of the subordinate certificates issued by the entity and had certain decision making rights for the entity. See Note 10 for a further description of this entity and the investments it holds and Note 12 for additional information on non-controlling interests in the entity. We consolidate the Point 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. For certain of our consolidated VIEs, we have elected to account for the assets and liabilities of these entities as collateralized financing entities ("CFE"). A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity effectively represents the fair value of the beneficial interests we own in the entity. 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 September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 242,234 $ 2,479,750 $ — $ 1,999,405 $ — $ — $ — $ 4,721,389 Business purpose loans, held-for-investment — — 3,402,410 — — — — 3,402,410 Multifamily loans, held-for-investment — — — — 482,791 — — 482,791 Other investments — — — — — 187,880 167,442 355,322 Cash and cash equivalents — — — — — 12,977 — 12,977 Restricted cash 148 — — — — 19,872 5,033 25,053 Accrued interest receivable 232 7,869 13,451 6,068 1,321 1,068 — 30,009 Other assets 275 — 13,172 1,958 — 6,283 50 21,738 Total Assets $ 242,889 $ 2,487,619 $ 3,429,033 $ 2,007,431 $ 484,112 $ 228,080 $ 172,525 $ 9,051,689 Short-term debt $ — $ — $ — $ — $ — $ 151,910 $ — $ 151,910 Accrued interest payable 108 5,918 10,691 4,279 1,195 97 — 22,288 Accrued expenses and other liabilities — — 224 — — 15,835 16,740 32,799 Asset-backed securities issued 239,447 2,243,299 3,126,405 1,550,111 451,402 — 145,437 7,756,101 Total Liabilities $ 239,555 $ 2,249,217 $ 3,137,320 $ 1,554,390 $ 452,597 $ 167,842 $ 162,177 $ 7,963,098 Fair value of our investments $ 3,062 $ 236,451 $ 287,813 $ 451,252 $ 31,389 $ 60,238 $ 10,348 $ 1,080,553 Number of VIEs 20 13 15 3 1 3 1 56 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI 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 Fair value of our investments $ 4,559 $ 220,020 $ 241,808 $ 430,087 $ 28,415 $ 67,766 $ — $ 992,655 Number of VIEs 20 10 14 2 1 3 — 50 The following table presents income (loss) from these VIEs for the three and nine months ended September 30, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities Three Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 1,042 $ 18,867 $ 48,723 $ 18,707 $ 4,846 $ 3,905 $ — $ 96,090 Interest expense (641) (15,368) (37,415) (13,303) (4,460) (1,018) — (72,205) Net interest income 401 3,499 11,308 5,404 386 2,887 — 23,885 Non-interest income Investment fair value changes, net (247) 3,314 2,943 13,849 554 (2,080) 47 18,380 Other income — — 10 — — — — 10 Total non-interest income, net (247) 3,314 2,953 13,849 554 (2,080) 47 18,390 General and administrative expenses — — — — — (60) — (60) Other expenses — — — — — (149) — (149) Income from Consolidated VIEs $ 154 $ 6,813 $ 14,261 $ 19,253 $ 940 $ 598 $ 47 $ 42,066 Nine Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 3,559 $ 48,842 $ 152,445 $ 58,372 $ 14,492 $ 12,168 $ — $ 289,878 Interest expense (2,271) (38,848) (118,469) (41,698) (13,294) (3,414) — (217,994) Net interest income 1,288 9,994 33,976 16,674 1,198 8,754 — 71,884 Non-interest income Investment fair value changes, net (1,162) 13,118 6,354 54,282 11,330 (5,646) 47 78,323 Other income — — 10 — — — — 10 Total non-interest income, net (1,162) 13,118 6,364 54,282 11,330 (5,646) 47 78,333 General and administrative expenses — — — — — (150) — (150) Other expenses — — — — — (591) — (591) Income from Consolidated VIEs $ 126 $ 23,112 $ 40,340 $ 70,956 $ 12,528 $ 2,367 $ 47 $ 149,476 Three Months Ended September 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 1,795 $ 20,919 $ 36,181 $ 21,696 $ 4,918 $ 4,403 $ — $ 89,912 Interest expense (1,059) (17,828) (26,383) (15,473) (4,426) (1,587) — (66,756) Net interest income 736 3,091 9,798 6,223 492 2,816 — 23,156 Non-interest income Investment fair value changes, net (81) 7,851 9,692 82,214 2,166 (422) — 101,420 Total non-interest income, net (81) 7,851 9,692 82,214 2,166 (422) — 101,420 General and administrative expenses — — — — — (41) — (41) Other expenses — — — — — (471) — (471) Income from Consolidated VIEs $ 655 $ 10,942 $ 19,490 $ 88,437 $ 2,658 $ 1,882 $ — $ 124,064 Nine Months Ended September 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 7,674 $ 68,566 $ 99,169 $ 64,869 $ 49,960 $ 13,026 $ — $ 303,264 Interest expense (5,099) (58,455) (72,768) (47,495) (47,154) (4,961) — (235,932) Net interest income 2,575 10,111 26,401 17,374 2,806 8,065 — 67,332 Non-interest income Investment fair value changes, net (702) (22,065) (41,841) (33,081) (82,744) (9,015) — (189,448) Total non-interest income, net (702) (22,065) (41,841) (33,081) (82,744) (9,015) — (189,448) General and administrative expenses — — — — — (784) — (784) Other expenses — — — — — 346 — 346 Income (Loss) from Consolidated VIEs $ 1,873 $ (11,954) $ (15,440) $ (15,707) $ (79,938) $ (1,388) $ — $ (122,554) In addition to our consolidated VIEs for which we made the CFE election, we consolidate additional VIEs for which we did not make the CFE election, and elected to account for the ABS issued by these entities at amortized cost. These include our CAFL Bridge securitization, Freddie Mac SLST re-securitization, and Servicing Investment entities. We consolidate the assets and liabilities of certain Sequoia, CAFL and Point HEI 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, CAFL and Point HEI 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 including rights to direct loss mitigation activities; 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, CAFL and Point HEI 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 September 30, 2021, we did not call any of our consolidated CAFL entities. During the nine months ended September 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 50 Sequoia securitization entities sponsored by us that are still outstanding as of September 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 September 30, 2021, we called two of our unconsolidated Sequoia entities, and purchased $66 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $6 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 nine months ended September 30, 2021, we called six of our unconsolidated Sequoia entities, and purchased $167 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $15 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 September 30, 2021, we held $151 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 nine months ended September 30, 2021 and 2020. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans transferred $ — $ — $ 1,231,803 $ 1,573,703 Trading securities retained, at fair value — — 7,774 43,362 AFS securities retained, at fair value — — 1,600 3,198 The following table summarizes the cash flows during the three and nine months ended September 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 September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Proceeds from new transfers $ — $ — $ 1,266,063 $ 1,610,761 MSR fees received 1,095 2,280 4,038 7,445 Funding of compensating interest, net 54 4 (116) (293) Cash flows received on retained securities 16,724 5,873 42,117 19,242 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 nine months ended September 30, 2021 and 2020. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A N/A N/A Discount rates N/A N/A N/A N/A Credit loss assumptions N/A N/A N/A N/A Nine Months Ended September 30, 2021 Nine Months Ended September 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 September 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) September 30, 2021 December 31, 2020 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 18,380 $ 20,982 Subordinate securities, classified as AFS 128,874 136,475 Mortgage servicing rights 6,068 8,413 Maximum loss exposure (1) $ 153,322 $ 165,870 Assets transferred: Principal balance of loans outstanding $ 5,542,244 $ 7,728,432 Principal balance of loans 30+ days delinquent 32,422 138,029 (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 September 30, 2021 and December 31, 2020. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood September 30, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at September 30, 2021 $ 6,068 $ 18,380 $ 128,874 Expected life (in years) (2) 2 4 8 Prepayment speed assumption (annual CPR) (2) 36 % 25 % 32 % Decrease in fair value from: 10% adverse change $ 502 $ 1,173 $ 57 25% adverse change 1,173 2,789 141 Discount rate assumption (2) 12 % 18 % 3.8 % Decrease in fair value from: 100 basis point increase $ 134 $ 417 $ 9,353 200 basis point increase 261 812 17,829 Credit loss assumption (2) N/A 0.34 % 0.34 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,190 25% higher losses N/A — 5,473 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 $18 million and $17 million of interest-only securities at September 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 September 30, 2021 and December 31, 2020, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) September 30, 2021 December 31, 2020 Mortgage-Backed Securities Senior $ 4,114 $ 11,131 Mezzanine — 2,014 Subordinate 201,918 173,523 Total Mortgage-Backed Securities 206,032 186,668 Excess MSR 11,368 14,133 Total Investments in Third-Party Sponsored VIEs $ 217,400 $ 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	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,495,044 $ 1,495,044 $ 176,604 $ 176,604 Residential loans, held-for-investment 4,721,389 4,721,389 4,072,410 4,072,410 Business purpose loans, held-for-sale 466,346 466,346 245,394 245,394 Business purpose loans, held-for-investment 4,227,209 4,227,209 3,890,959 3,890,959 Multifamily loans 482,791 482,791 492,221 492,221 Real estate securities 353,286 353,286 344,125 344,125 Servicer advance investments (1) 170,062 170,062 231,489 231,489 MSRs (1) 12,389 12,389 8,815 8,815 Excess MSRs (1) 29,185 29,185 34,418 34,418 HEIs (1) 167,856 167,856 42,440 42,440 Other investments (2) 17,574 17,574 18,847 18,847 Cash and cash equivalents 556,989 556,989 461,260 461,260 Restricted cash 88,717 88,717 83,190 83,190 Derivative assets 51,103 51,103 53,238 53,238 REO (3) 18,863 21,657 8,413 9,229 Margin receivable (3) 16,503 16,503 4,758 4,758 FHLBC stock (3) 10 10 5,000 5,000 Pledged collateral (3) — — 1,177 1,177 Liabilities Short-term debt $ 1,750,941 $ 1,750,941 $ 522,609 $ 522,609 Margin payable (4) 48,298 48,298 — — Guarantee obligation (4) 7,902 5,263 10,039 7,843 Point HEI non-controlling interest 16,722 16,722 — — Derivative liabilities 10,972 10,972 16,072 16,072 ABS issued, net Fair value 7,756,101 7,756,101 6,900,362 6,900,362 Amortized cost 427,724 428,059 200,299 204,892 Other long-term debt, net (5) 847,889 848,929 774,726 783,570 Convertible notes, net (5) 512,979 539,067 511,085 499,865 Trust preferred securities and subordinated notes, net (5) 138,709 94,163 138,674 80,910 (1) These investments are included in Other investments on our consolidated balance sheets. (2) Comprised of financial instruments 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 nine months ended September 30, 2021, we elected the fair value option for $11 million and $37 million of securities, respectively, $3.17 billion and $9.75 billion of residential loans (principal balance), respectively, $637 million and $1.55 billion of business purpose loans (principal balance), respectively, $5 million and $9 million of MSRs, respectively, and $11 million and $15 million of other financial instruments, respectively. Additionally, during the three months ended September 30, 2021, we elected the fair value option for $122 million of HEIs. 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, HEIs, 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 September 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 September 30, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 6,216,433 $ — $ — $ 6,216,433 Business purpose loans 4,693,555 — — 4,693,555 Multifamily loans 482,791 — — 482,791 Real estate securities 353,286 — — 353,286 Servicer advance investments 170,062 — — 170,062 MSRs 12,389 — — 12,389 Excess MSRs 29,185 — — 29,185 HEIs 167,856 — — 167,856 Other investments 17,574 — — 17,574 Derivative assets 51,103 8,213 33,628 9,262 Liabilities Non-controlling interest in consolidated Point HEI entity $ 16,722 $ — $ — $ 16,722 Derivative liabilities 10,972 8,348 74 2,550 ABS issued 7,756,101 — — 7,756,101 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 HEIs 42,440 — — 42,440 Other investments 18,847 — — 18,847 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 nine months ended September 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 Excess MSRs HEIs Other (In Thousands) Beginning balance - $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 34,418 $ 42,440 $ 27,662 Acquisitions 9,926,335 38,176 — 37,117 1,600 — — 122,373 14,615 Originations — 1,515,262 — — — — — — — Sales (6,958,669) (9,484) — (32,704) (4,785) — — — — Principal paydowns (1,051,390) (942,096) (5,685) (1,783) (45,120) (58,248) — (10,220) (9,224) Gains (losses) in net income (loss), net 53,549 (25,658) (3,745) 24,713 26,998 (3,179) (5,233) 13,263 (2,974) Unrealized losses in OCI, net — — — — 3,125 — — — — Other settlements, net (1) (2,406) (18,998) — — — — — — (116) Ending balance - $ 6,216,433 $ 4,693,555 $ 482,791 $ 153,010 $ 200,276 $ 170,062 $ 29,185 $ 167,856 $ 29,963 Liabilities Derivatives (2) Point HEI Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2020 $ 14,450 $ — $ 6,900,362 Acquisitions — 16,639 2,552,785 Principal paydowns — — (1,500,357) Gains (losses) in net income (loss), net 17,806 83 (196,689) Other settlements, net (1) (25,544) — — Ending balance - September 30, 2021 $ 6,712 $ 16,722 $ 7,756,101 (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 September 30, 2021 and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and nine months ended September 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 September 30, 2021 and 2020 Included in Net Income Included in Net Income Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Assets Residential loans at Redwood $ 6,553 $ (107) $ 9,371 $ (865) Business purpose loans 18,810 21,155 19,829 17,901 Net investments in consolidated Sequoia entities (1) 2,885 7,700 11,779 (22,802) Net investments in consolidated Freddie Mac SLST entities (1) 13,781 82,209 54,006 (33,087) Net investments in consolidated Freddie Mac K-Series entity (1) 555 2,165 11,330 (11,014) Net investments in consolidated CAFL SFR entities (1) 2,943 9,673 5,500 (41,048) Net investment in consolidated Point HEI entity (1) 47 — 129 — Trading securities 1,547 (3,549) 3,824 (80,358) Servicer advance investments (2,079) 25 (3,179) (6,172) MSRs (235) (2,376) (49) (16,798) Excess MSRs (803) (1,127) (5,233) (7,650) HEIs at Redwood (41) 2,384 21 (4,286) Loan purchase and interest rate lock commitments 9,021 10,791 9,261 10,773 Liabilities Non-controlling interest in consolidated Point HEI entity $ (83) $ — $ (83) $ — Loan purchase commitments (2,570) 420 (2,550) (1,334) (1) Represents the portion of net gains or losses included in our consolidated statements of income (loss) related to loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at September 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 September 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 September 30, 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at September 30, 2021 Gain (Loss) for September 30, 2021 Carrying Fair Value Measurements Using Three Months Ended Nine Months Ended (In Thousands) Level 1 Level 2 Level 3 September 30, 2021 September 30, 2021 Assets REO $ 622 $ — $ — $ 622 $ (1) $ (4) 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 nine months ended September 30, 2021 and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 9,045 $ (478) $ 57,145 $ (15,972) Residential loan purchase commitments 18,817 13,067 18,351 35,123 Single-family rental loans held-for-sale, at fair value 19,205 43,191 54,675 55,868 Single-family rental loan interest rate lock commitments (744) — — 341 Bridge loans 3,433 938 6,702 (4,256) Trading securities (1) 32 — (342) — Risk management derivatives, net 3,539 (99) 38,117 (52,931) Total mortgage banking activities, net (2) $ 53,327 $ 56,619 $ 174,648 $ 18,173 Investment Fair Value Changes, Net Residential loans at Redwood $ 816 $ 218 $ 2,423 $ (93,314) Single-family rental loans held-for-investment — — — (20,806) Bridge loans held-for-investment 900 6,812 4,142 (10,016) Trading securities 1,546 (3,600) 25,067 (224,679) Servicer advance investments (2,079) 26 (3,179) (6,172) Excess MSRs (803) (1,127) (5,233) (7,650) Net investments in Legacy Sequoia entities (3) (247) (81) (1,162) (702) Net investments in Sequoia entities (3) 3,314 7,851 13,118 (22,065) Net investments in Freddie Mac SLST entities (3) 13,849 82,214 54,282 (33,081) Net investment in Freddie Mac K-Series entity (3) 554 2,166 11,330 (82,744) Net investments in CAFL entities (3) 2,943 9,673 6,354 (41,048) Net investment in Point HEI entity (3) 47 — 47 — HEIs at Redwood 5,622 2,384 13,017 (4,286) Other investments (385) 67 50 (4,825) Risk management derivatives, net — — — (59,142) Credit recoveries (losses) on AFS securities — 444 388 (1,027) Total investment fair value changes, net $ 26,077 $ 107,047 $ 120,644 $ (611,557) Other Income MSRs $ (989) $ (4,783) $ (3,236) $ (27,346) Risk management derivatives, net — — — 13,966 Total other income (4) $ (989) $ (4,783) $ (3,236) $ (13,380) Total Market Valuation Gains (Losses), Net $ 78,415 $ 158,883 $ 292,056 $ (606,764) (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, securitized Point HEIs, 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 September 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 September 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 $ 624,477 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 3.00 - $ 3.00 $ 3.00 Whole loan spread to swap rate 202 - 202 bps 202 bps Jumbo loans committed to sell 870,568 Whole loan committed sales price $ 101.90 - $ 103.32 $ 102.46 Loans held by Legacy Sequoia (2) 242,234 Liability price N/A N/A Loans held by Sequoia (2) 2,479,750 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,999,405 Liability price N/A N/A Business purpose loans: Single-family rental loans 466,346 Senior credit spread 65 - 65 bps 65 bps Subordinate credit spread 110 - 1,523 bps 401 bps Senior credit support 35 - 35 % 35 % IO discount rate 9 - 9 % 9 % Prepayment rate (annual CPR) 3 - 3 % 3 % Non-securitizable loan dollar price $ 76 - $ 111 $ 101 Single-family rental loans held by CAFL (2) 3,402,410 Liability price N/A N/A Bridge loans 824,799 Discount rate 4 - 15 % 6 % Multifamily loans held by Freddie Mac K-Series (2) 482,791 Liability price N/A N/A Trading and AFS securities 353,286 Discount rate 2 - 38 % 7 % Prepayment rate (annual CPR) 8 - 58 % 27 % Default rate — - 25 % 4 % Loss severity — - 50 % 24 % CRT dollar price $ 96 - $ 116 $ 104 Servicer advance investments 170,062 Discount rate 2 - 3 % 2 % Prepayment rate (annual CPR) 20 - 30 % 21 % Expected remaining life (3) 5 - 5 years 5 years Mortgage servicing income 2 - 11 bps 9 bps MSRs 12,389 Discount rate 12 - 15 % 13 % Prepayment rate (annual CPR) 6 - 80 % 28 % Per loan annual cost to service $ 95 - $ 95 $ 95 Excess MSRs 29,185 Discount rate 13 - 16 % 15 % Prepayment rate (annual CPR) 21 - 30 % 25 % Excess mortgage servicing income 8 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) September 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) HEIs at Redwood $ 414 Dollar Price $ 92 - $ 124 $ 105 HEIs held by Point HEI entity 167,442 Liability price N/A N/A REO 622 Loss severity 11 - 40 % 22 % Residential loan purchase commitments, net 6,712 Committed sales price $ 102.11 - $ 102.77 $ 102.54 Pull-through rate 4 - 100 % 71 % Whole loan spread to TBA price $ 3.00 - $ 3.00 $ 3.00 Whole loan spread to swap rate 185 - 202 bps 201 bps Prepayment rate (annual CPR) 20 - 20 % 20 % Liabilities ABS issued (2) : At consolidated Sequoia entities 2,482,746 Discount rate 1 - 18 % 3 % Prepayment rate (annual CPR) 7 - 55 % 33 % Default rate — - 36 % 2 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 3,126,405 Discount rate 1 - 13 % 3 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 2 - 18 % 9 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,550,111 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) 451,402 Discount rate 1 - 8 % 2 % At consolidated Point HEI entity (4) 145,437 Discount rate 3 - 15 % 4 % Prepayment rate (annual CPR) 20 - 20 % 20 % Default rate 6 - 6 % 6 % Loss severity 25 - 25 % 25 % Home price appreciation 3 - 4 % 3 % (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 and HEIs held by consolidated entities was based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At September 30, 2021, the fair value of securities we owned at the consolidated Sequoia, CAFL SFR, Freddie Mac SLST, Freddie Mac K-Series, and Point HEI entities was $240 million, $288 million, $451 million, $31 million, and $10 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 is a more detailed description of our financial instruments measured at fair value and their significant inputs, as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy. In addition to the Level 3 financial instruments included in Table 5.7 above, certain of our Other investments (comprised of strategic investments in early-stage start-up companies) are Level 3 financial instruments that we account for under the fair value option. These investments generally take the form of equity or debt with conversion features and do not have readily determinable fair values. We generally value these assets based on our original investment price until there is an observable price change in an orderly transaction for the identical or similar investment of the same issuer.

Residential Loans

Residential Loans	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,495,079 $ — $ — $ — $ 1,495,079 Held-for-investment at fair value — 242,234 2,479,750 1,999,405 4,721,389 Total Residential Loans $ 1,495,079 $ 242,234 $ 2,479,750 $ 1,999,405 $ 6,216,468 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 September 30, 2021, we owned mortgage servicing rights associated with $1.40 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 September 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 1,958 198 Unpaid principal balance $ 1,464,767 $ 172,748 Fair value of loans $ 1,495,079 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,478,424 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 4 1 Unpaid principal balance of loans with 90+ day delinquencies $ 3,159 $ 1,882 Fair value of loans with 90+ day delinquencies $ 2,490 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,167,186 $ 172,162 $ 9,747,867 $ 2,859,813 Principal balance of loans sold 2,360,862 87,868 6,787,490 4,750,615 Principal balance of loans transferred to HFI 448,878 — 1,623,000 274,048 Net market valuation gains (losses) recorded (1) 9,861 (478) 59,568 (15,972) (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 September 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,653 3,022 12,444 Unpaid principal balance $ 278,815 $ 2,447,402 $ 2,022,724 Fair value of loans $ 242,234 $ 2,479,750 $ 1,999,405 Delinquency information Number of loans with 90+ day delinquencies (1) 40 30 1,168 Unpaid principal balance of loans with 90+ day delinquencies $ 14,038 $ 24,438 $ 209,913 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 4 305 Unpaid principal balance of loans in foreclosure $ 4,416 $ 2,863 $ 52,319 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 nine months ended September 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended September 30, Nine Months Ended September 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) — 218 — (93,314) (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 nine months ended September 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2021 Three Months Ended September 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 $ 464,189 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) (2,580) (11,663) (13,836) 21,938 (5,175) 159,687 Nine Months Ended September 30, 2021 Nine Months Ended September 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 $ 1,669,683 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (2) 9,896 (27,076) 5,177 (38,996) (21,727) 15,254 (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 September 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 466,346 — $ — $ — $ 466,346 Held-for-investment at fair value — 3,402,410 548,445 276,354 4,227,209 Total Business Purpose Loans $ 466,346 $ 3,402,410 $ 548,445 $ 276,354 $ 4,693,555 December 31, 2020 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL 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 Single-Family Rental Loans Nearly all of the outstanding single-family rental loans at September 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with less than 1% with original maturities of 30 years. Bridge Loans The outstanding bridge loans held-for-investment at September 30, 2021 were first-lien, interest-only loans with original maturities of six to 24 months and were comprised of 69% one-month LIBOR-indexed adjustable-rate loans and 31% fixed-rate loans. At September 30, 2021, we had a $426 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 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 at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 392,620 $ 208,938 $ 195,744 $ 65,517 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 253 7,695 1,567 Fair value of loans transferred from HFS to HFI (1) 332,670 276,354 326,405 N/A Fair value of loans transferred from HFI to HFS (2) — N/A — N/A Mortgage banking activities income (loss) recorded (3) 19,205 3,691 43,191 29 Investment fair value changes recorded (4) — 900 — 6,812 Nine Months Ended Nine Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 957,935 $ 557,327 $ 631,749 $ 351,353 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 9,484 33,843 23,860 Fair value of loans transferred from HFS to HFI (1) 799,375 276,354 925,437 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 N/A — N/A Mortgage banking activities income (loss) recorded (3) 54,675 5,212 54,731 (3,412) Investment fair value changes recorded (4) — 4,142 (20,806) (10,016) (1) Represents the transfer of 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 nine months ended September 30, 2021, we recorded loan origination fee income of $9 million and $22 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, we recorded loan origination fee income of $3 million and $13 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. Business Purpose 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 and bridge loans owned by these entities. During the nine months ended September 30, 2021, we transferred three 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 business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 2021 and 2020. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (34,803) $ — $ 88,271 $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (96,934) $ — $ (14,319) $ — (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 . REO See Note 12 for detail on BPL loans transferred to REO during 2021. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 123 1,157 1,092 1,589 Unpaid principal balance $ 451,295 $ 3,207,118 $ 550,711 $ 272,243 Fair value of loans $ 466,346 $ 3,402,411 $ 548,445 $ 276,354 Weighted average coupon 4.57 % 5.27 % 7.48 % 7.19 % Weighted average remaining loan term (years) 7 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 127,930 N/A $ 126,725 N/A Market value of loans pledged as collateral under long-term debt facilities $ 298,014 N/A $ 373,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 7 15 35 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,067 $ 39,423 $ 30,132 $ — Fair value of loans with 90+ day delinquencies (2) $ 2,664 N/A $ 26,525 $ — Number of loans in foreclosure 6 10 34 — Unpaid principal balance of loans in foreclosure $ 4,978 $ 22,004 $ 26,177 $ — Fair value of loans in foreclosure (2) $ 2,619 N/A $ 22,570 $ — December 31, 2020 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (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 N/A Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 N/A 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 September 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 457,123 $ 462,808 Fair value of loans $ 482,791 $ 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 September 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 nine months ended September 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (487) $ 2,340 $ (3,745) $ (61,500) (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	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,495,079 $ — $ — $ — $ 1,495,079 Held-for-investment at fair value — 242,234 2,479,750 1,999,405 4,721,389 Total Residential Loans $ 1,495,079 $ 242,234 $ 2,479,750 $ 1,999,405 $ 6,216,468 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 September 30, 2021, we owned mortgage servicing rights associated with $1.40 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 September 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 1,958 198 Unpaid principal balance $ 1,464,767 $ 172,748 Fair value of loans $ 1,495,079 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,478,424 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 4 1 Unpaid principal balance of loans with 90+ day delinquencies $ 3,159 $ 1,882 Fair value of loans with 90+ day delinquencies $ 2,490 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,167,186 $ 172,162 $ 9,747,867 $ 2,859,813 Principal balance of loans sold 2,360,862 87,868 6,787,490 4,750,615 Principal balance of loans transferred to HFI 448,878 — 1,623,000 274,048 Net market valuation gains (losses) recorded (1) 9,861 (478) 59,568 (15,972) (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 September 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,653 3,022 12,444 Unpaid principal balance $ 278,815 $ 2,447,402 $ 2,022,724 Fair value of loans $ 242,234 $ 2,479,750 $ 1,999,405 Delinquency information Number of loans with 90+ day delinquencies (1) 40 30 1,168 Unpaid principal balance of loans with 90+ day delinquencies $ 14,038 $ 24,438 $ 209,913 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 4 305 Unpaid principal balance of loans in foreclosure $ 4,416 $ 2,863 $ 52,319 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 nine months ended September 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended September 30, Nine Months Ended September 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) — 218 — (93,314) (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 nine months ended September 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2021 Three Months Ended September 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 $ 464,189 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) (2,580) (11,663) (13,836) 21,938 (5,175) 159,687 Nine Months Ended September 30, 2021 Nine Months Ended September 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 $ 1,669,683 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (2) 9,896 (27,076) 5,177 (38,996) (21,727) 15,254 (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 September 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 466,346 — $ — $ — $ 466,346 Held-for-investment at fair value — 3,402,410 548,445 276,354 4,227,209 Total Business Purpose Loans $ 466,346 $ 3,402,410 $ 548,445 $ 276,354 $ 4,693,555 December 31, 2020 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL 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 Single-Family Rental Loans Nearly all of the outstanding single-family rental loans at September 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with less than 1% with original maturities of 30 years. Bridge Loans The outstanding bridge loans held-for-investment at September 30, 2021 were first-lien, interest-only loans with original maturities of six to 24 months and were comprised of 69% one-month LIBOR-indexed adjustable-rate loans and 31% fixed-rate loans. At September 30, 2021, we had a $426 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 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 at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 392,620 $ 208,938 $ 195,744 $ 65,517 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 253 7,695 1,567 Fair value of loans transferred from HFS to HFI (1) 332,670 276,354 326,405 N/A Fair value of loans transferred from HFI to HFS (2) — N/A — N/A Mortgage banking activities income (loss) recorded (3) 19,205 3,691 43,191 29 Investment fair value changes recorded (4) — 900 — 6,812 Nine Months Ended Nine Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 957,935 $ 557,327 $ 631,749 $ 351,353 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 9,484 33,843 23,860 Fair value of loans transferred from HFS to HFI (1) 799,375 276,354 925,437 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 N/A — N/A Mortgage banking activities income (loss) recorded (3) 54,675 5,212 54,731 (3,412) Investment fair value changes recorded (4) — 4,142 (20,806) (10,016) (1) Represents the transfer of 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 nine months ended September 30, 2021, we recorded loan origination fee income of $9 million and $22 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, we recorded loan origination fee income of $3 million and $13 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. Business Purpose 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 and bridge loans owned by these entities. During the nine months ended September 30, 2021, we transferred three 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 business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 2021 and 2020. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (34,803) $ — $ 88,271 $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (96,934) $ — $ (14,319) $ — (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 . REO See Note 12 for detail on BPL loans transferred to REO during 2021. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 123 1,157 1,092 1,589 Unpaid principal balance $ 451,295 $ 3,207,118 $ 550,711 $ 272,243 Fair value of loans $ 466,346 $ 3,402,411 $ 548,445 $ 276,354 Weighted average coupon 4.57 % 5.27 % 7.48 % 7.19 % Weighted average remaining loan term (years) 7 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 127,930 N/A $ 126,725 N/A Market value of loans pledged as collateral under long-term debt facilities $ 298,014 N/A $ 373,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 7 15 35 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,067 $ 39,423 $ 30,132 $ — Fair value of loans with 90+ day delinquencies (2) $ 2,664 N/A $ 26,525 $ — Number of loans in foreclosure 6 10 34 — Unpaid principal balance of loans in foreclosure $ 4,978 $ 22,004 $ 26,177 $ — Fair value of loans in foreclosure (2) $ 2,619 N/A $ 22,570 $ — December 31, 2020 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (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 N/A Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 N/A 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 September 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 457,123 $ 462,808 Fair value of loans $ 482,791 $ 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 September 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 nine months ended September 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (487) $ 2,340 $ (3,745) $ (61,500) (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	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,495,079 $ — $ — $ — $ 1,495,079 Held-for-investment at fair value — 242,234 2,479,750 1,999,405 4,721,389 Total Residential Loans $ 1,495,079 $ 242,234 $ 2,479,750 $ 1,999,405 $ 6,216,468 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 September 30, 2021, we owned mortgage servicing rights associated with $1.40 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 September 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 1,958 198 Unpaid principal balance $ 1,464,767 $ 172,748 Fair value of loans $ 1,495,079 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,478,424 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 4 1 Unpaid principal balance of loans with 90+ day delinquencies $ 3,159 $ 1,882 Fair value of loans with 90+ day delinquencies $ 2,490 $ 1,223 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,167,186 $ 172,162 $ 9,747,867 $ 2,859,813 Principal balance of loans sold 2,360,862 87,868 6,787,490 4,750,615 Principal balance of loans transferred to HFI 448,878 — 1,623,000 274,048 Net market valuation gains (losses) recorded (1) 9,861 (478) 59,568 (15,972) (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 September 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,653 3,022 12,444 Unpaid principal balance $ 278,815 $ 2,447,402 $ 2,022,724 Fair value of loans $ 242,234 $ 2,479,750 $ 1,999,405 Delinquency information Number of loans with 90+ day delinquencies (1) 40 30 1,168 Unpaid principal balance of loans with 90+ day delinquencies $ 14,038 $ 24,438 $ 209,913 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 4 305 Unpaid principal balance of loans in foreclosure $ 4,416 $ 2,863 $ 52,319 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 nine months ended September 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended September 30, Nine Months Ended September 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) — 218 — (93,314) (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 nine months ended September 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2021 Three Months Ended September 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 $ 464,189 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) (2,580) (11,663) (13,836) 21,938 (5,175) 159,687 Nine Months Ended September 30, 2021 Nine Months Ended September 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 $ 1,669,683 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (2) 9,896 (27,076) 5,177 (38,996) (21,727) 15,254 (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 September 30, 2021 and December 31, 2020. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 466,346 — $ — $ — $ 466,346 Held-for-investment at fair value — 3,402,410 548,445 276,354 4,227,209 Total Business Purpose Loans $ 466,346 $ 3,402,410 $ 548,445 $ 276,354 $ 4,693,555 December 31, 2020 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL 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 Single-Family Rental Loans Nearly all of the outstanding single-family rental loans at September 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with less than 1% with original maturities of 30 years. Bridge Loans The outstanding bridge loans held-for-investment at September 30, 2021 were first-lien, interest-only loans with original maturities of six to 24 months and were comprised of 69% one-month LIBOR-indexed adjustable-rate loans and 31% fixed-rate loans. At September 30, 2021, we had a $426 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 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 at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 392,620 $ 208,938 $ 195,744 $ 65,517 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 253 7,695 1,567 Fair value of loans transferred from HFS to HFI (1) 332,670 276,354 326,405 N/A Fair value of loans transferred from HFI to HFS (2) — N/A — N/A Mortgage banking activities income (loss) recorded (3) 19,205 3,691 43,191 29 Investment fair value changes recorded (4) — 900 — 6,812 Nine Months Ended Nine Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 957,935 $ 557,327 $ 631,749 $ 351,353 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 9,484 33,843 23,860 Fair value of loans transferred from HFS to HFI (1) 799,375 276,354 925,437 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 N/A — N/A Mortgage banking activities income (loss) recorded (3) 54,675 5,212 54,731 (3,412) Investment fair value changes recorded (4) — 4,142 (20,806) (10,016) (1) Represents the transfer of 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 nine months ended September 30, 2021, we recorded loan origination fee income of $9 million and $22 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, we recorded loan origination fee income of $3 million and $13 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. Business Purpose 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 and bridge loans owned by these entities. During the nine months ended September 30, 2021, we transferred three 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 business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 2021 and 2020. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (34,803) $ — $ 88,271 $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (96,934) $ — $ (14,319) $ — (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 . REO See Note 12 for detail on BPL loans transferred to REO during 2021. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 123 1,157 1,092 1,589 Unpaid principal balance $ 451,295 $ 3,207,118 $ 550,711 $ 272,243 Fair value of loans $ 466,346 $ 3,402,411 $ 548,445 $ 276,354 Weighted average coupon 4.57 % 5.27 % 7.48 % 7.19 % Weighted average remaining loan term (years) 7 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 127,930 N/A $ 126,725 N/A Market value of loans pledged as collateral under long-term debt facilities $ 298,014 N/A $ 373,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 7 15 35 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,067 $ 39,423 $ 30,132 $ — Fair value of loans with 90+ day delinquencies (2) $ 2,664 N/A $ 26,525 $ — Number of loans in foreclosure 6 10 34 — Unpaid principal balance of loans in foreclosure $ 4,978 $ 22,004 $ 26,177 $ — Fair value of loans in foreclosure (2) $ 2,619 N/A $ 22,570 $ — December 31, 2020 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (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 N/A Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 N/A 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 September 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 457,123 $ 462,808 Fair value of loans $ 482,791 $ 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 September 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 nine months ended September 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (487) $ 2,340 $ (3,745) $ (61,500) (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	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) September 30, 2021 December 31, 2020 Trading $ 153,010 $ 125,667 Available-for-sale 200,276 218,458 Total Real Estate Securities $ 353,286 $ 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 September 30, 2021 and December 31, 2020. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Senior Interest-only securities (1) $ 22,494 $ 28,464 Total Senior 22,494 28,464 Mezzanine Sequoia securities — 3,649 Total Mezzanine — 3,649 Subordinate RPL securities 64,845 47,448 Multifamily securities 11,298 5,592 Other third-party residential securities 54,373 40,514 Total Subordinate 130,516 93,554 Total Trading Securities $ 153,010 $ 125,667 (1) Includes $15 million and $13 million of Sequoia certificated mortgage servicing rights at September 30, 2021 and December 31, 2020, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at September 30, 2021 and December 31, 2020. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Senior (1) $ — $ — Mezzanine — 3,577 Subordinate 216,771 242,278 Total Trading Securities $ 216,771 $ 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 nine months ended September 30, 2021 and 2020. Table 9.4 – Trading Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of securities acquired $ 10,750 $ 11,000 $ 28,380 $ 77,721 Principal balance of securities sold 750 15,903 53,561 720,517 Net market valuation gains (losses) recorded (1) 1,578 (3,600) 24,725 (224,679) (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 September 30, 2021 and December 31, 2020. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Mezzanine Other third-party residential securities $ — $ 2,014 Total Mezzanine — 2,014 Subordinate Sequoia securities 128,874 136,475 Multifamily securities 31,320 43,663 Other third-party residential securities 40,082 36,306 Total Subordinate 200,276 216,444 Total AFS Securities $ 200,276 $ 218,458 The following table provides the activity of available-for-sale securities during the three and nine months ended September 30, 2021 and 2020. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Fair value of securities acquired $ — $ 25,483 $ 1,600 $ 56,664 Fair value of securities sold — — 4,785 55,193 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 September 30, 2021, we had $28 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 September 30, 2021 and December 31, 2020. Table 9.7 – Carrying Value of AFS Securities September 30, 2021 (In Thousands) Mezzanine Subordinate Total Principal balance $ — $ 238,459 $ 238,459 Credit reserve — (29,448) (29,448) Unamortized discount, net — (88,108) (88,108) Amortized cost — 120,903 120,903 Gross unrealized gains — 79,406 79,406 Gross unrealized losses — (33) (33) CECL allowance — — — Carrying Value $ — $ 200,276 $ 200,276 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 nine months ended September 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 Nine Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 40,349 $ 90,216 $ 44,967 $ 95,718 Amortization of net discount — (6,437) — (9,620) Realized credit losses (184) — (433) — Acquisitions — — 2,825 1,208 Sales, calls, other (320) (6,068) (1,312) (15,797) Transfers to (release of) credit reserves, net (10,397) 10,397 (16,599) 16,599 Ending Balance $ 29,448 $ 88,108 $ 29,448 $ 88,108 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 September 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) September 30, 2021 $ — $ — $ — $ 1,600 $ (33) $ 1,567 December 31, 2020 9,129 (1,047) 7,920 — — — At September 30, 2021, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 84 AFS securities, of which one was 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 $33 thousand at September 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 September 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 September 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 September 30, 2021. Table 9.10 – Significant Credit Quality Indicators September 30, 2021 Subordinate Securities Default rate N/A Loss severity N/A The following table details the activity related to the allowance for credit losses for AFS securities for the three and nine months ended September 30, 2021. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (In Thousands) Beginning balance allowance for credit losses $ — $ 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 — (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 nine months ended September 30, 2021 and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Gross realized gains - sales $ — $ — $ 1,507 $ 8,779 Gross realized gains - calls 6,389 — 15,484 — Gross realized losses - sales — — — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 6,389 $ — $ 16,991 $ 4,635 During the three months ended September 30, 2021, we called two of our unconsolidated Sequoia entities, and purchased $66 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $6 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 nine months ended September 30, 2021, we called six of our unconsolidated Sequoia entities, and purchased $167 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $15 million gain on the securities we owned from these securitizations, which was recognized through Realized gains, net on our consolidated statements of income (loss).

Other Investments

Other Investments	9 Months Ended
	Sep. 30, 2021
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) September 30, 2021 December 31, 2020 Servicer advance investments $ 170,062 $ 231,489 HEIs 167,856 42,440 Strategic investments 31,108 4,449 Excess MSRs 29,185 34,418 Mortgage servicing rights 12,389 8,815 Other 11,766 26,564 Total Other Investments $ 422,366 $ 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 September 30, 2021, we had funded $94 million of total capital to the SA Buyers (see Note 16 for additional detail). At September 30, 2021, our servicer advance investments had a carrying value of $170 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $7.53 billion. The outstanding servicer advance receivables associated with this investment were $159 million at September 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 September 30, 2021 and December 31, 2020. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) September 30, 2021 December 31, 2020 Principal and interest advances $ 77,116 $ 110,923 Escrow advances (taxes and insurance advances) 62,117 79,279 Corporate advances 20,175 27,454 Total Servicer Advance Receivables $ 159,408 $ 217,656 We account for our servicer advance investments at fair value and during the three and nine months ended September 30, 2021, we recorded $2 million and $7 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $2 million and $3 million, respectively, through Investment fair value changes, net in our consolidated statements of income (loss). During the three and nine months ended September 30, 2020, we recorded $3 million and $8 million of interest income, respectively, through Other interest income, and recorded a net market valuation gain of less than $0.1 million and a net market valuation loss of $6 million, respectively, through Investment fair value changes, net in our consolidated statements of income (loss). HEIs In 2019, we entered into a flow purchase agreement to acquire home equity investment contracts from Point Digital. At September 30, 2021, we had acquired $47 million of HEIs under this flow purchase agreement. We account for these investments under the fair value option and during the three and nine months ended September 30, 2021, we recorded net market valuation gains of $6 million and $13 million, respectively, related to these assets through Investment fair value changes, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2020, we recorded a net market valuation gain of $2 million and a net market valuation loss of $4 million, respectively, related to these assets through Investment fair value changes, net on our consolidated statements of income (loss). During the three months ended September 30, 2021, in conjunction with co-sponsoring a securitization of HEIs, we purchased $122 million of additional HEIs from other contributors to the securitization, then transferred $170 million of HEIs to the Point HEI securitization entity and issued $146 million of ABS (See Note 4 for further discussion on the Point securitization entity and Note 14 for further discussion on ABS issued). We retained subordinate certificates from the entity valued at $10 million as of September 30, 2021 , representing our economic interest in the entity. The other contributors to the securitization own subordinate certificates in the entity that were valued at $17 million at September 30, 2021 and are carried on our balance sheet as non-controlling interests within the Accrued expenses and other liabilities line item of our consolidated balance sheets. We consolidate the Point HEI securitization entity in accordance with GAAP and have elected to account for it under the CFE election. During the three months ended September 30, 2021 , we recorded net market valuation gains of less than $0.1 million re lated to our net investment in the Point HEI entity through Investment fair value changes, net on our consolidated statements of income (loss). During three months ended September 30, 2021 , we amended our flow purchase agreement with Point Digital and committed to purchase additional HEIs. See Note 16 for additional detail on this commitment. Strategic Investments Strategic investments represent investments we have made in companies through our RWT Horizons venture investment strategy or at a corporate level. At September 30, 2021, we had made 11 investments in companies through RWT Horizons and two corporate investments, including our investment in Churchill Finance. See Note 3 for additional detail on how we account for our strategic investments. 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 nine months ended September 30, 2021, we recognized $3 million and $9 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $1 million and $5 million, respectively, through Investment fair value changes, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2020, we recognized $3 million and $9 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $1 million and $8 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 the three and nine months ended September 30, 2021, we retained $5 million and $9 million of MSRs, respectively, from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments September 30, 2021 December 31, 2020 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 3,213 $ 293,200 $ 224 $ 42,000 TBAs 8,213 2,205,000 18,260 3,520,000 Swaptions 30,415 1,335,000 19,727 1,585,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 9,262 1,687,314 15,027 2,617,254 Total Assets $ 51,103 $ 5,520,514 $ 53,238 $ 7,764,254 Liabilities - Risk Management Derivatives Interest rate swaps $ (74) $ 40,500 $ — $ — TBAs (7,599) 2,190,000 (15,495) 3,105,000 Interest rate futures (749) 133,200 — — Liabilities - Other Derivatives Loan purchase commitments (2,550) 1,084,579 (577) 477,153 Total Liabilities $ (10,972) $ 3,448,279 $ (16,072) $ 3,582,153 Total Derivative Financial Instruments, Net $ 40,131 $ 8,968,793 $ 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 September 30, 2021, we were party to swaps and swaptions with an aggregate notional amount of $1.67 billion, TBA agreements with an aggregate notional amount of $4.40 billion, and interest rate futures contracts with an aggregate notional amount of $133 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 nine months ended September 30, 2021, risk management derivatives had net market valuation gains of $4 million and $38 million, respectively. During the three and nine months ended September 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 both the three and nine months ended September 30, 2021, LPCs and IRLCs had net market valuation gains of $18 million that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, LPCs and IRLCs had net market valuation gains of $13 million and $35 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 $77 million and $81 million at September 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 September 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 nine months ended September 30, 2021, we did not have any derivatives designated as cash flow hedges. For the three and nine months ended September 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 nine months ended September 30, 2021 and 2020. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net interest expense on cash flows hedges $ — $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (1,041) (1,040) (3,086) (2,148) Total Interest Expense $ (1,041) $ (1,040) $ (3,086) $ (3,008) 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 September 30, 2021, we assessed this risk as remote and did not record an associated specific valuation adjustment. At September 30, 2021, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	9 Months Ended
	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) September 30, 2021 December 31, 2020 Accrued interest receivable $ 41,997 $ 39,445 Investment receivable 32,420 43,176 Deferred tax asset 20,153 871 REO 18,863 8,413 Margin receivable 16,503 4,758 Operating lease right-of-use assets 13,659 15,012 Fixed assets and leasehold improvements (1) 9,344 4,203 Pledged collateral — 1,177 Other 9,254 13,533 Total Other Assets $ 162,193 $ 130,588 (1) Fixed assets and leasehold improvements had a basis of $17 million and accumulated depreciation of $7 million at September 30, 2021. Accrued expenses and other liabilities at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) September 30, 2021 December 31, 2020 Accrued compensation $ 64,354 $ 24,393 Margin payable 48,298 14,728 Accrued interest payable 34,545 34,858 Payable to non-controlling interests (1) 31,781 16,941 Operating lease liabilities 15,771 16,687 Accrued income taxes payable 11,336 5,614 Residential loan and MSR repurchase reserve 9,003 8,631 Guarantee obligations 7,902 10,039 Accrued operating expenses 4,068 5,509 Bridge loan holdbacks 3,784 5,708 Deferred consideration — 14,579 Other 20,734 21,653 Total Accrued Expenses and Other Liabilities $ 251,576 $ 179,340 (1) Includes $11 million and $17 million of payables to non-controlling interest holders in our consolidated Servicing Investment and Point HEI entities, respectively, as September 30, 2021. Includes $17 million payable to a non-controlling interest holder in our consolidated Servicing Investment entities at December 31, 2020. 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 SFR entities during the nine months ended September 30, 2021. Table 12.3 – REO Activity Nine Months Ended September 30, 2021 (In Thousands) Bridge (1) Legacy Sequoia Freddie Mac SLST CAFL SFR Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 7,074 65 2,591 11,924 21,654 Liquidations (2) (7,387) (607) (1,555) (1,990) (11,539) Changes in fair value, net 536 178 276 (655) 335 Balance at End of Period $ 4,823 $ 274 $ 1,958 $ 11,808 $ 18,863 (1) Includes activity of bridge loans at Redwood and at consolidated CAFL bridge entity. (2) For the nine months ended September 30, 2021, REO liquidations resulted in $0.3 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 SFR entities at September 30, 2021 and December 31, 2020. Table 12.4 – REO Assets Number of REO assets Bridge Legacy Sequoia Freddie Mac SLST CAFL SFR Total At September 30, 2021 5 2 20 2 29 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	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Short-Term Debt	Short-Term Debt We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At September 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 September 30, 2021 and December 31, 2020. Table 13.1 – Short-Term Debt September 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 7 $ 1,335,464 $ 2,700,000 1.89 % 11/2021-8/2022 156 Business purpose loan warehouse 2 183,800 350,000 3.39 % 3/2022-7/2022 201 Real estate securities repo 3 79,766 — 1.23 % 10/2021-12/2021 34 Total Short-Term Debt Facilities 12 1,599,030 Servicer advance financing 1 151,911 260,000 1.89 % 11/2021 61 Total Short-Term Debt $ 1,750,941 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 September 30, 2021 and December 31, 2020. Table 13.2 – Collateral for Short-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Collateral Type Held-for-sale residential loans $ 1,478,424 $ 156,355 Business purpose loans 254,655 127,029 Real estate securities On balance sheet 14,367 23,193 Sequoia securitizations (1) 62,075 63,105 Freddie Mac K-Series securitization (1) 31,388 28,255 Total real estate securities owned 107,830 114,553 Restricted cash and other assets 1,709 315 Total Collateral for Short-Term Debt Facilities 1,842,618 398,252 Cash 12,975 9,978 Restricted cash 19,872 23,220 Servicer advances 159,408 217,656 Total Collateral for Servicer Advance Financing 192,255 250,854 Total Collateral for Short-Term Debt $ 2,034,873 $ 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 nine months ended September 30, 2021, the average balances of our short-term debt facilities were $1.98 billion and $1.61 billion, respectively. At September 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 September 30, 2021, the accrued interest payable balance on this financing was $0.1 million and the unamortized capitalized commitment costs were $0.1 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 September 30, 2021. At both September 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 September 30, 2021. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities September 30, 2021 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 278,663 $ 1,056,801 $ 1,335,464 Business purpose loans — — 183,800 183,800 Real estate securities 43,800 35,966 — 79,766 Total Secured Short-Term Debt 43,800 314,629 1,240,601 1,599,030 Servicer advance financing — 151,911 — 151,911 Total Short-Term Debt $ 43,800 $ 466,540 $ 1,240,601 $ 1,750,941

Asset-Backed Securities Issued

Asset-Backed Securities Issued	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	Asset-Backed Securities Issued ABS issued represents securities issued by non-recourse securitization entities we consolidate under GAAP. The majority of our ABS issued is carried at fair value under the CFE election (see Note 4 for additional detail) with the remainder carried at amortized cost. The carrying values of ABS issued by our consolidated securitization entities at September 30, 2021 and December 31, 2020, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued September 30, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac Point HEI Total (Dollars in Thousands) Certificates with principal balance $ 273,957 $ 2,199,488 $ 3,134,946 $ 1,630,252 $ 420,654 $ 145,320 $ 7,804,617 Interest-only certificates 739 21,003 189,946 19,787 10,885 — 242,360 Market valuation adjustments (35,249) 22,808 68,684 60,625 19,863 117 136,848 ABS Issued, Net $ 239,447 $ 2,243,299 $ 3,393,576 $ 1,710,664 $ 451,402 $ 145,437 $ 8,183,825 Range of weighted average interest rates, by series (3) 0.49% to 1.45% 2.34% to 5.07% 2.34% to 5.21% 3.50% to 4.75% 3.41 % 3.27 % Stated maturities (3) 2024 - 2036 2047 - 2051 2021 - 2031 2028 - 2059 2025 2052 Number of series 20 13 16 3 1 1 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST (2) Freddie Mac K-Series Point HEI 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 (3) 0.35% to 1.55% 2.25% to 5.04% 2.68% to 5.42% 3.50% to 4.75% 3.39 % — % Stated maturities (3) 2024 - 2036 2047 - 2050 2021 - 2031 2028 - 2059 2025 — Number of series 20 10 14 3 1 — (1) Includes $270 million (principal balance) of ABS issued by a CAFL bridge securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 2021. (2) Includes $163 million and $205 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 2021 and December 31, 2020, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and Point HEI entities is subject to early redemption and interest rate step-ups as described below. During the third quarter of 2021, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest bridge loans (presented within CAFL in table 14.1 above), which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $270 million (principal balance) of ABS issued to third parties and retained the remaining beneficial ownership interest in the trust. The ABS were issued at a discount and we have elected to account for the ABS issued at amortized cost. At September 30, 2021, the principal balance of the ABS issued was $270 million, and the debt discount and deferred issuance costs were $3 million, for a net carrying value of $267 million. The weighted average stated coupon of the ABS issued was 2.34% at issuance. The ABS issued by the CAFL bridge entity are subject to an optional redemption in March 2024, and beginning in March 2025 the interest rate on the ABS issued increases by 2% through final maturity in March 2029. The ABS issued by this securitization were backed by assets including $276 million of bridge loans and $28 million of restricted cash at September 30, 2021. The securitization is structured with $300 million of total funding capacity and a feature to allow reinvestment of loan payoffs for the first 30 months of the transaction (through March 2024). During the third quarter of 2021, we consolidated the assets and liabilities of the Point HEI entity formed in connection with the securitization of HEIs, which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $146 million (principal balance) of ABS issued to third parties and retained a portion of the remaining beneficial ownership interest in the trust. We elected to account for the entity under the CFE election and account for the ABS issued at fair value, with the entire change in fair value of the ABS issued (including accrued interest) recorded through Investment fair value changes, net on our consolidated statements of income (loss). The ABS issued by the Point HEI entity are subject to an optional redemption in September 2023, and beginning in September 2024 the interest rate on the ABS issued increases by 2% through final maturity in 2052. 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 September 30, 2021, the principal balance of the ABS issued was $163 million, and the debt discount and deferred issuance costs were $3 million, for a carrying value of $161 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 an optional redemption in July 2022 and in July 2023 the ABS interest rate steps up to 7.75%. 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 September 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 September 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) September 30, 2021 December 31, 2020 Legacy Sequoia $ 107 $ 141 Sequoia 5,918 4,697 CAFL 10,760 10,122 Freddie Mac SLST (1) 4,925 5,656 Freddie Mac K-Series 1,195 1,177 Total Accrued Interest Payable on ABS Issued $ 22,905 $ 21,793 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 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 September 30, 2021. Table 15.1 – Long-Term Debt September 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 $ 147,182 $ (417) $ 146,765 N/A 4.21 % 9/2024 CAFL Facility A 102,370 (429) 101,941 N/A 4.21 % 2/2025 Facility B 95,011 (439) 94,572 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility C 105,961 (320) 105,641 250,000 L + 3.00% N/A Recourse BPL Financing Facility D 168,228 — 168,228 450,000 L + 3.10% 6/2023 Facility E 230,883 (141) 230,742 250,000 L + 3.00% 9/2023 Total Long-Term Debt Facilities 849,635 (1,746) 847,889 Convertible notes 4.75% convertible senior notes 198,629 (2,098) 196,531 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,262) 147,938 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,582) 168,510 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (791) 138,709 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,510,056 $ (10,479) $ 1,499,577 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) plus an applicable spread. Recourse Subordinate Securities Financing In the third quarter of 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations. The financing is guaranteed by Redwood, with an interest rate of approximately 4.75% through June 2024. The financing facility may be terminated, at our option, in June 2023, and has a final maturity in June 2026, provided that the interest rate on amounts outstanding under the facility increases between June 2024 and June 2026. See "Facility B" above for details on borrowings and securities pledged as collateral under this facility at September 30, 2021. Non-Recourse BPL Financing Facilities In the third quarter of 2021, we reclassified one of our non-recourse facilities from long-term to short-term debt as the maturity of this facility was less than one year at September 30, 2021. 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 C" 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 D" above). The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at September 30, 2021 and December 31, 2020. Table 15.2 – Collateral for Long-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Collateral Type Bridge loans $ 373,597 $ 544,151 Single-family rental loans 298,014 154,774 Real estate securities Sequoia securitizations (1) 246,892 249,446 CAFL securitizations (1) 256,976 114,044 Total real estate securities owned 503,868 363,490 Other BPL investments — 21,414 Restricted cash — 1,100 Total Collateral for Long-Term Debt $ 1,175,479 $ 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 September 30, 2021 and December 31, 2020. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Long-term debt facilities $ 900 $ 1,799 Convertible notes 4.75% convertible senior notes 1,206 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,948 2,474 Trust preferred securities and subordinated notes 572 669 Total Accrued Interest Payable on Long-Term Debt $ 9,410 $ 12,402

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At September 30, 2021, we were obligated under seven non-cancelable operating leases with expiration dates through 2031 for $18 million of cumulative lease payments. Our operating lease expense was $3 million for both nine-month periods ended September 30, 2021 and 2020. The following table presents our future lease commitments at September 30, 2021. Table 16.1 – Future Lease Commitments by Year (In Thousands) September 30, 2021 2021 (3 months) $ 928 2022 3,714 2023 3,235 2024 2,411 2025 1,983 2026 and thereafter 6,128 Total Lease Commitments 18,399 Less: Imputed interest (2,628) Operating Lease Liabilities $ 15,771 During the nine months ended September 30, 2021, we did not enter into any new office leases. During the nine months ended September 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 September 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 September 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 September 30, 2021, we had commitments to fund up to $426 million of additional advances on existing bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before we fund the commitment. At September 30, 2021, we carried a $1 million contingent liability related to these commitments to fund construction advances. During the three and nine months ended September 30, 2021, we recorded a net market valuation loss of $0.3 million and a net market valuation gain of $1 million, respectively, related to this liability through Mortgage banking activities, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2020, we recorded a net market valuation gain of $1 million and a net market valuation loss of $1 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. Commitment to Acquire HEIs In the third quarter of 2021, we amended an existing flow purchase agreement with Point Digital to acquire HEIs that Point Digital originates with homeowners. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by a deed of trust or a mortgage. Our investments in HEIs allow us to share in both home price appreciation and depreciation of the associated property. At September 30, 2021, we had an outstanding commitment to fund up to $125 million under this agreement. 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 September 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 September 30, 2021, we had incurred less than $0.1 million of losses under these arrangements. For the three and nine months ended September 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 and $0.1 million, respectively. For the three and nine months ended September 30, 2020, other income related to these arrangements was $1 million and $3 million, respectively, and net market valuation losses related to these investments were $0.3 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 September 30, 2021, the loans had an unpaid principal balance of $618 million and a weighted average FICO score of 756 (at origination) and LTV ratio of 74% (at origination). At September 30, 2021, $21 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 September 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 us. At September 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 September 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. During the nine months ended September 30, 2021 and 2020, we received three and eight repurchase requests, respectively, and repurchased one and zero loans, respectively. During the nine months ended September 30, 2021 and 2020, we recorded repurchase provisions of $0.6 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 September 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 September 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended September 30, 2021 Three Months Ended September 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 $ 88,251 $ (78,511) $ 53,246 $ (82,637) Other comprehensive (loss) income (2,658) — 8,236 — Amounts reclassified from other (6,200) 1,041 (445) 1,040 Net current-period other comprehensive (loss) income (8,858) 1,041 7,791 1,040 Balance at End of Period $ 79,393 $ (77,470) $ 61,037 $ (81,597) Nine Months Ended September 30, 2021 Nine Months Ended September 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) 19,552 — (19,890) (32,806) Amounts reclassified from other (16,495) 3,087 (11,525) 2,148 Net current-period other comprehensive income (loss) 3,057 3,087 (31,415) (30,658) Balance at End of Period $ 79,393 $ (77,470) $ 61,037 $ (81,597) The following table provides a summary of reclassifications out of accumulated other comprehensive income for the three and nine months ended September 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 September 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 $ — $ (445) Gain on sale of AFS securities Realized gains, net (6,200) — $ (6,200) $ (445) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,041 $ 1,040 $ 1,041 $ 1,040 Amount Reclassified From Affected Line Item in the Nine Months Ended September 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) $ 1,026 Gain on sale of AFS securities Realized gains, net (16,107) (12,552) $ (16,495) $ (11,526) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 3,087 $ 2,148 $ 3,087 $ 2,148 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. During the nine months ended September 30, 2021, we issued 1,466,669 common shares for net proceeds of $18 million under this program. At September 30, 2021, approximately $92 million remained outstanding for future offerings under this program. Direct Stock Purchase and Dividend Reinvestment Plan During the nine months ended September 30, 2021, we issued 119,040 shares of common stock for net proceeds of $1 million through our Direct Stock Purchase and Dividend Reinvestment Plan. During the nine months ended September 30, 2020, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At September 30, 2021, approximately 6 million shares remained outstanding for future offerings under this plan. Earnings (Loss) per Common Share The following table provides the basic and diluted earnings (loss) per common share computations for the three and nine months ended September 30, 2021 and 2020. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, except Share Data) 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 88,286 $ 141,812 $ 275,568 $ (636,142) Less: Dividends and undistributed earnings allocated to participating securities (2,984) (4,067) (8,979) (1,427) Net income (loss) allocated to common shareholders $ 85,302 $ 137,745 $ 266,589 $ (637,569) Basic weighted average common shares outstanding 112,995,847 113,403,102 112,754,691 113,952,308 Basic Earnings (Loss) per Common Share $ 0.75 $ 1.21 $ 2.36 $ (5.60) Diluted Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 88,286 $ 141,812 $ 275,568 $ (636,142) Less: Dividends and undistributed earnings allocated to participating securities (2,747) (3,512) (8,151) (1,427) Add back: Interest expense on convertible notes for the period, net of tax 6,870 6,990 20,585 — Net income (loss) allocated to common shareholders $ 92,409 $ 145,290 $ 288,002 $ (637,569) Weighted average common shares outstanding 112,995,847 113,403,102 112,754,691 113,952,308 Net effect of dilutive equity awards 292,749 — 253,819 — Net effect of assumed convertible notes conversion to common shares 28,566,875 28,566,875 28,566,875 — Diluted weighted average common shares outstanding 141,855,471 141,969,977 141,575,385 113,952,308 Diluted Earnings (Loss) per Common Share $ 0.65 $ 1.02 $ 2.03 $ (5.60) We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. During the three and nine months ended September 30, 2021 and the three months ended September 30, 2020, 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 nine months ended September 30, 2020, 32.2 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 nine months ended September 30, 2021, the number of outstanding equity awards that were antidilutive totaled 22,102 and 18,736, respectively. For the three and nine months ended September 30, 2020, the number of outstanding equity awards that were antidilutive totaled 13,560 and 15,457, 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 nine months ended September 30, 2021, we did not repurchase any shares. At September 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	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At September 30, 2021 and December 31, 2020, 7,273,676 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 $26 million at September 30, 2021, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Nine Months Ended September 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 5,766 — 335 8,471 Performance-based valuation adjustment — — — 1,072 — 1,072 Equity grant forfeitures (2) (670) (550) — — (1,222) Equity compensation expense (375) (1,188) (5,681) (2,002) (251) (9,497) Unrecognized Compensation Cost at End of Period $ 187 $ 4,052 $ 17,301 $ 4,864 $ 84 $ 26,488 At September 30, 2021, the weighted average amortization period remaining for all of our equity awards was one year. Restricted Stock Awards ("RSAs") At September 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 nine months ended September 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 September 30, 2021 and December 31, 2020, there were 445,183 and 282,424 shares, respectively, of RSUs outstanding. During the nine months ended September 30, 2021, there were 272,261 RSUs granted, 64,759 RSUs distributed, and 44,743 RSUs forfeited. Unvested RSUs at September 30, 2021 vest through 2025. Deferred Stock Units (“DSUs”) At September 30, 2021 and December 31, 2020, there were 3,318,540 and 2,805,144 DSUs, respectively, outstanding of which 1,546,724 and 1,206,125, respectively, had vested. During the nine months ended September 30, 2021, there were 700,552 DSUs granted, 155,995 DSUs distributed, and 31,161 DSUs forfeited. Unvested DSUs at September 30, 2021 vest through 2025. Performance Stock Units (“PSUs”) At September 30, 2021 and December 31, 2020, the target number of PSUs that were unvested was 955,710 and 978,735, respectively. Vesting for PSUs generally occurs at the end of three years from their respective grant dates based on various total shareholder return 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 September 30, 2021 and December 31, 2020, 546,093 and 489,886 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at September 30, 2021.

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 19.1 – Mortgage Banking Activities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 27,862 $ 12,589 $ 75,496 $ 19,151 Trading securities (2) 32 — (342) — Risk management derivatives (3) 3,963 (10) 37,187 (31,304) Other income (expense), net (4) 1,089 (715) 3,305 (7,069) Total residential mortgage banking activities, net 32,946 11,864 115,646 (19,222) Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) 18,461 43,191 54,675 56,209 Risk management derivatives (3) (424) (89) 930 (21,627) Bridge loans, at fair value 3,433 938 6,702 (4,256) Other income, net (5) 8,747 3,491 22,236 13,407 Total business purpose mortgage banking activities, net 30,217 47,531 84,543 43,733 Mortgage Banking Activities, Net $ 63,163 $ 59,395 $ 200,189 $ 24,511 (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	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 20.1 – Other Income Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 MSR (loss) income, net (1) $ 295 $ (2,362) $ 949 $ (5,595) Agency risk sharing agreement income 575 1,200 2,318 3,146 FHLBC capital stock dividend 3 116 53 1,201 Bridge loan fees 1,131 716 2,735 2,520 Other 384 216 2,302 2,707 Other Income, Net $ 2,388 $ (114) $ 8,357 $ 3,979 (1) Includes servicing fees and fair value changes for MSRs and associated hedges, net.

General and Administrative Expe

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 General and Administrative Expenses Fixed compensation expense $ 11,285 $ 10,103 $ 34,359 $ 36,605 Annual variable compensation 19,844 5,882 51,021 9,171 Long-term incentive award expense (1) 4,915 2,639 14,766 7,896 Acquisition-related equity compensation expense (2) 1,189 1,212 3,613 3,636 Systems and consulting 2,975 2,145 9,224 7,752 Office costs 2,197 1,859 6,029 5,854 Accounting and legal 1,197 1,601 3,132 6,605 Corporate costs 964 831 2,528 2,128 Other 3,126 1,358 7,165 5,185 Total General and Administrative Expenses 47,692 27,630 131,837 84,832 Loan Acquisition Costs Commissions 1,906 879 4,830 3,027 Underwriting costs 2,351 771 5,872 3,289 Transfer and holding costs 364 508 1,226 1,400 Total Loan Acquisition Costs 4,621 2,158 11,928 7,716 Other Expenses Goodwill impairment expense — — — 88,675 Amortization of purchase-related intangible assets 3,873 3,873 11,619 12,052 Other 150 3,915 485 3,559 Total Other Expenses 4,023 7,788 12,104 104,286 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 56,336 $ 37,576 $ 155,869 $ 196,834 (1) For the three months ended September 30, 2021, long-term incentive award expense includes $3 million of expense for awards settleable in shares of our common stock and $1 million of expense for awards settleable in cash. For the nine months ended September 30, 2021, long-term incentive award expense includes $10 million of expense for awards settleable in shares of our common stock and $4 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	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Taxes	Taxes We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. To qualify as a REIT, the Company must distribute at least 90% of its annual REIT taxable income and meet certain other requirements that relate to, among others, the assets it holds, the income it generates, and the composition of its stockholders. For the nine months ended September 30, 2021 and 2020, we recognized a provision for income taxes of $14 million and a benefit from income taxes of $13 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at September 30, 2021 and 2020. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate September 30, 2021 September 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 (13.1) % (23.6) % Change in valuation allowance (6.8) % (4.0) % Dividends paid deduction (1) (4.9) % — % Effective Tax Rate 4.8 % 2.0 % (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 nine months ended September 30, 2020, the dividends paid deduction is 0% because there was no REIT taxable income available to apply against the dividends paid. This was due to our REIT incurring a taxable loss during the period. We assessed our tax positions for all open tax years (i.e., Federal, 2017 to 2021, and State, 2016 to 2021) at September 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 23.1 – Business Segment Financial Information Three Months Ended September 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 44,220 $ 67,235 $ 33,218 $ 1,049 $ 145,722 Interest expense (25,395) (46,834) (21,370) (10,155) (103,754) Net interest income 18,825 20,401 11,848 (9,106) 41,968 Non-interest income Mortgage banking activities, net 32,946 30,217 — — 63,163 Investment fair value changes, net 2,285 3,470 20,569 (247) 26,077 Other income, net 874 1,184 — 330 2,388 Realized gains, net 6,389 314 — — 6,703 Total non-interest income (loss), net 42,494 35,185 20,569 83 98,331 General and administrative expenses (8,989) (13,987) (1,415) (23,301) (47,692) Loan acquisition costs (2,395) (2,175) (51) — (4,621) Other expenses — (3,873) (150) — (4,023) (Provision for) benefit from income taxes (11,139) (3,485) (335) 19,282 4,323 Segment Contribution $ 38,796 $ 32,066 $ 30,466 $ (13,042) Net Income $ 88,286 Non-cash amortization (expense) income, net $ 5,862 $ (4,713) $ 276 $ (1,995) $ (570) Nine Months Ended September 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 104,801 $ 202,155 $ 102,180 $ 3,586 $ 412,722 Interest expense (65,488) (151,351) (66,883) (30,649) (314,371) Net interest income 39,313 50,804 35,297 (27,063) 98,351 Non-interest income Mortgage banking activities, net 115,646 84,543 — — 200,189 Investment fair value changes, net 8,958 10,551 102,303 (1,168) 120,644 Other income, net 4,566 3,044 5 742 8,357 Realized gains, net 15,484 812 1,507 — 17,803 Total non-interest income, net 144,654 98,950 103,815 (426) 346,993 General and administrative expenses (30,539) (38,834) (3,476) (58,988) (131,837) Loan acquisition costs (5,698) (6,088) (138) (4) (11,928) Other expenses (6) (11,523) (592) 17 (12,104) (Provision for) benefit from income taxes (25,289) (6,988) (912) 19,282 (13,907) Segment Contribution $ 122,435 $ 86,321 $ 133,994 $ (67,182) Net Income $ 275,568 Non-cash amortization (expense) income, net $ 8,867 $ (16,154) $ 317 $ (5,845) $ (12,815) Three Months Ended September 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 26,672 $ 55,930 $ 37,576 $ 1,804 $ 121,982 Interest expense (21,401) (44,159) (24,238) (10,613) (100,411) Net interest income 5,271 11,771 13,338 (8,809) 21,571 Non-interest income Mortgage banking activities, net 11,864 47,531 — — 59,395 Investment fair value changes, net 2,443 16,892 87,890 (178) 107,047 Other income, net (2,011) 623 340 934 (114) Realized gains, net — — 602 — 602 Total non-interest income, net 12,296 65,046 88,832 756 166,930 General and administrative expenses (4,602) (9,321) (709) (12,998) (27,630) Loan acquisition costs (304) (1,660) (194) — (2,158) Other expenses (3,309) (3,874) (470) (135) (7,788) (Provision for) benefit from income taxes (826) (8,544) 257 — (9,113) Segment Contribution $ 8,526 $ 53,418 $ 101,054 $ (21,186) Net Income $ 141,812 Non-cash amortization income (expense), net $ 1,785 $ (6,719) $ 117 $ (1,516) $ (6,333) Nine Months Ended September 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 123,956 $ 162,732 $ 155,583 $ 7,738 $ 450,009 Interest expense (87,725) (113,143) (111,666) (37,214) (349,748) Net interest income 36,231 49,589 43,917 (29,476) 100,261 Non-interest income Mortgage banking activities, net (19,222) 43,733 — — 24,511 Investment fair value changes, net (159,107) (84,837) (366,696) (917) (611,557) Other income, net (2,278) 3,493 1,072 1,692 3,979 Realized gains, net 2,001 — 3,236 25,182 30,419 Total non-interest income, net (178,606) (37,611) (362,388) 25,957 (552,648) General and administrative expenses (12,901) (29,977) (4,230) (37,724) (84,832) Loan acquisition costs (1,512) (5,630) (567) (7) (7,716) Other expenses (3,309) (100,743) 347 (581) (104,286) Benefit from income taxes 7,827 477 4,775 — 13,079 Segment Contribution $ (152,270) $ (123,895) $ (318,146) $ (41,831) Net Loss $ (636,142) Non-cash amortization income (expense), net $ 732 $ (18,035) $ 1,170 $ (3,244) $ (19,377) Other significant non-cash expense: goodwill impairment $ — $ (88,675) $ — $ — $ (88,675) The following table presents the components of Corporate/Other for the three and nine months ended September 30, 2021 and 2020. Table 23.2 – Components of Corporate/Other Three Months Ended September 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,042 $ 7 $ 1,049 $ 1,795 $ 9 $ 1,804 Interest expense (641) (9,514) (10,155) (1,059) (9,554) (10,613) Net interest income 401 (9,507) (9,106) 736 (9,545) (8,809) Non-interest income Investment fair value changes, net (247) — (247) (81) (97) (178) Other income — 330 330 — 934 934 Total non-interest income, net (247) 330 83 (81) 837 756 General and administrative expenses — (23,301) (23,301) — (12,998) (12,998) Other expenses — — — — (135) (135) Provision for income taxes — 19,282 19,282 — — — Total $ 154 $ (13,196) $ (13,042) $ 655 $ (21,841) $ (21,186) Nine Months Ended September 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 3,559 $ 27 $ 3,586 $ 7,674 $ 64 $ 7,738 Interest expense (2,271) (28,378) (30,649) (5,099) (32,115) (37,214) Net interest income 1,288 (28,351) (27,063) 2,575 (32,051) (29,476) Non-interest income Investment fair value changes, net (1,162) (6) (1,168) (702) (215) (917) Other income — 742 742 — 1,692 1,692 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (1,162) 736 (426) (702) 26,659 25,957 General and administrative expenses — (58,988) (58,988) — (37,724) (37,724) Loan acquisition costs — (4) (4) — (7) (7) Other expenses — 17 17 — (581) (581) Provision for income taxes — 19,282 19,282 — — — Total $ 126 $ (67,308) $ (67,182) $ 1,873 $ (43,704) $ (41,831) (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 September 30, 2021 and December 31, 2020. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total September 30, 2021 Residential loans $ 3,974,829 $ — $ 1,999,405 $ 242,234 $ 6,216,468 Business purpose loans — 4,693,555 — — 4,693,555 Multifamily loans — — 482,791 — 482,791 Real estate securities 150,368 — 202,918 — 353,286 Other investments 12,389 6,767 379,102 24,108 422,366 Intangible assets — 45,246 — — 45,246 Total assets 4,219,950 4,860,226 3,088,815 903,723 13,072,714 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)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at September 30, 2021 and December 31, 2020, and for the three and nine months ended September 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 September 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 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 during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest single-family rental and bridge loans ("CAFL"), and beginning in the third quarter of 2021, an entity ("Point HEI") formed in connection with the securitization of home equity investment contracts ("HEIs"). 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 certain entities we are exposed to financial risks associated with our role as a sponsor or co-sponsor, servicing administrator, collateral 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 August 2021, the FASB issued ASU 2021-06, "Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants (SEC Update)." This new guidance aligns certain SEC paragraphs in the codification with new SEC rules issued in May 2020 related to changes to the disclosure requirements for acquired and disposed businesses. We adopted this guidance upon issuance in the third quarter of 2021, which did not have a material impact on our consolidated financial statements. 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 September 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)	9 Months Ended
	Sep. 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 September 30, 2021. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at September 30, 2021 Carrying Value at September 30, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (12,672) $ 32,628 7 Broker network 18,100 (9,352) 8,748 5 Non-compete agreements 9,500 (6,806) 2,694 3 Tradenames 4,000 (2,861) 1,139 3 Developed technology 1,800 (1,763) 37 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (36,054) $ 45,246 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) September 30, 2021 2021 (3 months) $ 3,685 2022 12,800 2023 10,091 2024 7,073 2025 and thereafter 11,597 Total Future Intangible Asset Amortization $ 45,246

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 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 September 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 September 30, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 33,628 $ — $ 33,628 $ (74) $ (32,408) $ 1,146 TBAs 8,213 — 8,213 (4,278) (3,117) 818 Total Assets $ 41,841 $ — $ 41,841 $ (4,352) $ (35,525) $ 1,964 Liabilities (2) Interest rate agreements $ (74) $ — $ (74) $ 74 $ — $ — TBAs (7,599) — (7,599) 4,278 3,321 — Futures (749) — (749) — 749 — Loan warehouse debt (1,335,464) — (1,335,464) 1,335,464 — — Security repurchase agreements (79,766) — (79,766) 79,766 — — Total Liabilities $ (1,423,652) $ — $ (1,423,652) $ 1,419,582 $ 4,070 $ — 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 ("Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet") 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)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Consolidated VIEs	A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity effectively represents the fair value of the beneficial interests we own in the entity. 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 September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 242,234 $ 2,479,750 $ — $ 1,999,405 $ — $ — $ — $ 4,721,389 Business purpose loans, held-for-investment — — 3,402,410 — — — — 3,402,410 Multifamily loans, held-for-investment — — — — 482,791 — — 482,791 Other investments — — — — — 187,880 167,442 355,322 Cash and cash equivalents — — — — — 12,977 — 12,977 Restricted cash 148 — — — — 19,872 5,033 25,053 Accrued interest receivable 232 7,869 13,451 6,068 1,321 1,068 — 30,009 Other assets 275 — 13,172 1,958 — 6,283 50 21,738 Total Assets $ 242,889 $ 2,487,619 $ 3,429,033 $ 2,007,431 $ 484,112 $ 228,080 $ 172,525 $ 9,051,689 Short-term debt $ — $ — $ — $ — $ — $ 151,910 $ — $ 151,910 Accrued interest payable 108 5,918 10,691 4,279 1,195 97 — 22,288 Accrued expenses and other liabilities — — 224 — — 15,835 16,740 32,799 Asset-backed securities issued 239,447 2,243,299 3,126,405 1,550,111 451,402 — 145,437 7,756,101 Total Liabilities $ 239,555 $ 2,249,217 $ 3,137,320 $ 1,554,390 $ 452,597 $ 167,842 $ 162,177 $ 7,963,098 Fair value of our investments $ 3,062 $ 236,451 $ 287,813 $ 451,252 $ 31,389 $ 60,238 $ 10,348 $ 1,080,553 Number of VIEs 20 13 15 3 1 3 1 56 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI 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 Fair value of our investments $ 4,559 $ 220,020 $ 241,808 $ 430,087 $ 28,415 $ 67,766 $ — $ 992,655 Number of VIEs 20 10 14 2 1 3 — 50 The following table presents income (loss) from these VIEs for the three and nine months ended September 30, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities Three Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 1,042 $ 18,867 $ 48,723 $ 18,707 $ 4,846 $ 3,905 $ — $ 96,090 Interest expense (641) (15,368) (37,415) (13,303) (4,460) (1,018) — (72,205) Net interest income 401 3,499 11,308 5,404 386 2,887 — 23,885 Non-interest income Investment fair value changes, net (247) 3,314 2,943 13,849 554 (2,080) 47 18,380 Other income — — 10 — — — — 10 Total non-interest income, net (247) 3,314 2,953 13,849 554 (2,080) 47 18,390 General and administrative expenses — — — — — (60) — (60) Other expenses — — — — — (149) — (149) Income from Consolidated VIEs $ 154 $ 6,813 $ 14,261 $ 19,253 $ 940 $ 598 $ 47 $ 42,066 Nine Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 3,559 $ 48,842 $ 152,445 $ 58,372 $ 14,492 $ 12,168 $ — $ 289,878 Interest expense (2,271) (38,848) (118,469) (41,698) (13,294) (3,414) — (217,994) Net interest income 1,288 9,994 33,976 16,674 1,198 8,754 — 71,884 Non-interest income Investment fair value changes, net (1,162) 13,118 6,354 54,282 11,330 (5,646) 47 78,323 Other income — — 10 — — — — 10 Total non-interest income, net (1,162) 13,118 6,364 54,282 11,330 (5,646) 47 78,333 General and administrative expenses — — — — — (150) — (150) Other expenses — — — — — (591) — (591) Income from Consolidated VIEs $ 126 $ 23,112 $ 40,340 $ 70,956 $ 12,528 $ 2,367 $ 47 $ 149,476 Three Months Ended September 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 1,795 $ 20,919 $ 36,181 $ 21,696 $ 4,918 $ 4,403 $ — $ 89,912 Interest expense (1,059) (17,828) (26,383) (15,473) (4,426) (1,587) — (66,756) Net interest income 736 3,091 9,798 6,223 492 2,816 — 23,156 Non-interest income Investment fair value changes, net (81) 7,851 9,692 82,214 2,166 (422) — 101,420 Total non-interest income, net (81) 7,851 9,692 82,214 2,166 (422) — 101,420 General and administrative expenses — — — — — (41) — (41) Other expenses — — — — — (471) — (471) Income from Consolidated VIEs $ 655 $ 10,942 $ 19,490 $ 88,437 $ 2,658 $ 1,882 $ — $ 124,064 Nine Months Ended September 30, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment Point HEI Total (Dollars in Thousands) Interest income $ 7,674 $ 68,566 $ 99,169 $ 64,869 $ 49,960 $ 13,026 $ — $ 303,264 Interest expense (5,099) (58,455) (72,768) (47,495) (47,154) (4,961) — (235,932) Net interest income 2,575 10,111 26,401 17,374 2,806 8,065 — 67,332 Non-interest income Investment fair value changes, net (702) (22,065) (41,841) (33,081) (82,744) (9,015) — (189,448) Total non-interest income, net (702) (22,065) (41,841) (33,081) (82,744) (9,015) — (189,448) General and administrative expenses — — — — — (784) — (784) Other expenses — — — — — 346 — 346 Income (Loss) from Consolidated VIEs $ 1,873 $ (11,954) $ (15,440) $ (15,707) $ (79,938) $ (1,388) $ — $ (122,554)
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 nine months ended September 30, 2021 and 2020. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans transferred $ — $ — $ 1,231,803 $ 1,573,703 Trading securities retained, at fair value — — 7,774 43,362 AFS securities retained, at fair value — — 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 nine months ended September 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 September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Proceeds from new transfers $ — $ — $ 1,266,063 $ 1,610,761 MSR fees received 1,095 2,280 4,038 7,445 Funding of compensating interest, net 54 4 (116) (293) Cash flows received on retained securities 16,724 5,873 42,117 19,242
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 nine months ended September 30, 2021 and 2020. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A N/A N/A Discount rates N/A N/A N/A N/A Credit loss assumptions N/A N/A N/A N/A Nine Months Ended September 30, 2021 Nine Months Ended September 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 September 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) September 30, 2021 December 31, 2020 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 18,380 $ 20,982 Subordinate securities, classified as AFS 128,874 136,475 Mortgage servicing rights 6,068 8,413 Maximum loss exposure (1) $ 153,322 $ 165,870 Assets transferred: Principal balance of loans outstanding $ 5,542,244 $ 7,728,432 Principal balance of loans 30+ days delinquent 32,422 138,029 (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 September 30, 2021 and December 31, 2020. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood September 30, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at September 30, 2021 $ 6,068 $ 18,380 $ 128,874 Expected life (in years) (2) 2 4 8 Prepayment speed assumption (annual CPR) (2) 36 % 25 % 32 % Decrease in fair value from: 10% adverse change $ 502 $ 1,173 $ 57 25% adverse change 1,173 2,789 141 Discount rate assumption (2) 12 % 18 % 3.8 % Decrease in fair value from: 100 basis point increase $ 134 $ 417 $ 9,353 200 basis point increase 261 812 17,829 Credit loss assumption (2) N/A 0.34 % 0.34 % Decrease in fair value from: 10% higher losses N/A $ — $ 2,190 25% higher losses N/A — 5,473 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 $18 million and $17 million of interest-only securities at September 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 September 30, 2021 and December 31, 2020, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) September 30, 2021 December 31, 2020 Mortgage-Backed Securities Senior $ 4,114 $ 11,131 Mezzanine — 2,014 Subordinate 201,918 173,523 Total Mortgage-Backed Securities 206,032 186,668 Excess MSR 11,368 14,133 Total Investments in Third-Party Sponsored VIEs $ 217,400 $ 200,801

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,495,044 $ 1,495,044 $ 176,604 $ 176,604 Residential loans, held-for-investment 4,721,389 4,721,389 4,072,410 4,072,410 Business purpose loans, held-for-sale 466,346 466,346 245,394 245,394 Business purpose loans, held-for-investment 4,227,209 4,227,209 3,890,959 3,890,959 Multifamily loans 482,791 482,791 492,221 492,221 Real estate securities 353,286 353,286 344,125 344,125 Servicer advance investments (1) 170,062 170,062 231,489 231,489 MSRs (1) 12,389 12,389 8,815 8,815 Excess MSRs (1) 29,185 29,185 34,418 34,418 HEIs (1) 167,856 167,856 42,440 42,440 Other investments (2) 17,574 17,574 18,847 18,847 Cash and cash equivalents 556,989 556,989 461,260 461,260 Restricted cash 88,717 88,717 83,190 83,190 Derivative assets 51,103 51,103 53,238 53,238 REO (3) 18,863 21,657 8,413 9,229 Margin receivable (3) 16,503 16,503 4,758 4,758 FHLBC stock (3) 10 10 5,000 5,000 Pledged collateral (3) — — 1,177 1,177 Liabilities Short-term debt $ 1,750,941 $ 1,750,941 $ 522,609 $ 522,609 Margin payable (4) 48,298 48,298 — — Guarantee obligation (4) 7,902 5,263 10,039 7,843 Point HEI non-controlling interest 16,722 16,722 — — Derivative liabilities 10,972 10,972 16,072 16,072 ABS issued, net Fair value 7,756,101 7,756,101 6,900,362 6,900,362 Amortized cost 427,724 428,059 200,299 204,892 Other long-term debt, net (5) 847,889 848,929 774,726 783,570 Convertible notes, net (5) 512,979 539,067 511,085 499,865 Trust preferred securities and subordinated notes, net (5) 138,709 94,163 138,674 80,910 (1) These investments are included in Other investments on our consolidated balance sheets. (2) Comprised of financial instruments 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 September 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 September 30, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 6,216,433 $ — $ — $ 6,216,433 Business purpose loans 4,693,555 — — 4,693,555 Multifamily loans 482,791 — — 482,791 Real estate securities 353,286 — — 353,286 Servicer advance investments 170,062 — — 170,062 MSRs 12,389 — — 12,389 Excess MSRs 29,185 — — 29,185 HEIs 167,856 — — 167,856 Other investments 17,574 — — 17,574 Derivative assets 51,103 8,213 33,628 9,262 Liabilities Non-controlling interest in consolidated Point HEI entity $ 16,722 $ — $ — $ 16,722 Derivative liabilities 10,972 8,348 74 2,550 ABS issued 7,756,101 — — 7,756,101 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 HEIs 42,440 — — 42,440 Other investments 18,847 — — 18,847 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 nine months ended September 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 Excess MSRs HEIs Other (In Thousands) Beginning balance - $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 34,418 $ 42,440 $ 27,662 Acquisitions 9,926,335 38,176 — 37,117 1,600 — — 122,373 14,615 Originations — 1,515,262 — — — — — — — Sales (6,958,669) (9,484) — (32,704) (4,785) — — — — Principal paydowns (1,051,390) (942,096) (5,685) (1,783) (45,120) (58,248) — (10,220) (9,224) Gains (losses) in net income (loss), net 53,549 (25,658) (3,745) 24,713 26,998 (3,179) (5,233) 13,263 (2,974) Unrealized losses in OCI, net — — — — 3,125 — — — — Other settlements, net (1) (2,406) (18,998) — — — — — — (116) Ending balance - $ 6,216,433 $ 4,693,555 $ 482,791 $ 153,010 $ 200,276 $ 170,062 $ 29,185 $ 167,856 $ 29,963 Liabilities Derivatives (2) Point HEI Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2020 $ 14,450 $ — $ 6,900,362 Acquisitions — 16,639 2,552,785 Principal paydowns — — (1,500,357) Gains (losses) in net income (loss), net 17,806 83 (196,689) Other settlements, net (1) (25,544) — — Ending balance - September 30, 2021 $ 6,712 $ 16,722 $ 7,756,101 (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 September 30, 2021 and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and nine months ended September 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 September 30, 2021 and 2020 Included in Net Income Included in Net Income Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Assets Residential loans at Redwood $ 6,553 $ (107) $ 9,371 $ (865) Business purpose loans 18,810 21,155 19,829 17,901 Net investments in consolidated Sequoia entities (1) 2,885 7,700 11,779 (22,802) Net investments in consolidated Freddie Mac SLST entities (1) 13,781 82,209 54,006 (33,087) Net investments in consolidated Freddie Mac K-Series entity (1) 555 2,165 11,330 (11,014) Net investments in consolidated CAFL SFR entities (1) 2,943 9,673 5,500 (41,048) Net investment in consolidated Point HEI entity (1) 47 — 129 — Trading securities 1,547 (3,549) 3,824 (80,358) Servicer advance investments (2,079) 25 (3,179) (6,172) MSRs (235) (2,376) (49) (16,798) Excess MSRs (803) (1,127) (5,233) (7,650) HEIs at Redwood (41) 2,384 21 (4,286) Loan purchase and interest rate lock commitments 9,021 10,791 9,261 10,773 Liabilities Non-controlling interest in consolidated Point HEI entity $ (83) $ — $ (83) $ — Loan purchase commitments (2,570) 420 (2,550) (1,334) (1) Represents the portion of net gains or losses included in our consolidated statements of income (loss) related to loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at September 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 September 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 September 30, 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at September 30, 2021 Gain (Loss) for September 30, 2021 Carrying Fair Value Measurements Using Three Months Ended Nine Months Ended (In Thousands) Level 1 Level 2 Level 3 September 30, 2021 September 30, 2021 Assets REO $ 622 $ — $ — $ 622 $ (1) $ (4)
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 nine months ended September 30, 2021 and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 9,045 $ (478) $ 57,145 $ (15,972) Residential loan purchase commitments 18,817 13,067 18,351 35,123 Single-family rental loans held-for-sale, at fair value 19,205 43,191 54,675 55,868 Single-family rental loan interest rate lock commitments (744) — — 341 Bridge loans 3,433 938 6,702 (4,256) Trading securities (1) 32 — (342) — Risk management derivatives, net 3,539 (99) 38,117 (52,931) Total mortgage banking activities, net (2) $ 53,327 $ 56,619 $ 174,648 $ 18,173 Investment Fair Value Changes, Net Residential loans at Redwood $ 816 $ 218 $ 2,423 $ (93,314) Single-family rental loans held-for-investment — — — (20,806) Bridge loans held-for-investment 900 6,812 4,142 (10,016) Trading securities 1,546 (3,600) 25,067 (224,679) Servicer advance investments (2,079) 26 (3,179) (6,172) Excess MSRs (803) (1,127) (5,233) (7,650) Net investments in Legacy Sequoia entities (3) (247) (81) (1,162) (702) Net investments in Sequoia entities (3) 3,314 7,851 13,118 (22,065) Net investments in Freddie Mac SLST entities (3) 13,849 82,214 54,282 (33,081) Net investment in Freddie Mac K-Series entity (3) 554 2,166 11,330 (82,744) Net investments in CAFL entities (3) 2,943 9,673 6,354 (41,048) Net investment in Point HEI entity (3) 47 — 47 — HEIs at Redwood 5,622 2,384 13,017 (4,286) Other investments (385) 67 50 (4,825) Risk management derivatives, net — — — (59,142) Credit recoveries (losses) on AFS securities — 444 388 (1,027) Total investment fair value changes, net $ 26,077 $ 107,047 $ 120,644 $ (611,557) Other Income MSRs $ (989) $ (4,783) $ (3,236) $ (27,346) Risk management derivatives, net — — — 13,966 Total other income (4) $ (989) $ (4,783) $ (3,236) $ (13,380) Total Market Valuation Gains (Losses), Net $ 78,415 $ 158,883 $ 292,056 $ (606,764) (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, securitized Point HEIs, 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 September 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 $ 624,477 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 3.00 - $ 3.00 $ 3.00 Whole loan spread to swap rate 202 - 202 bps 202 bps Jumbo loans committed to sell 870,568 Whole loan committed sales price $ 101.90 - $ 103.32 $ 102.46 Loans held by Legacy Sequoia (2) 242,234 Liability price N/A N/A Loans held by Sequoia (2) 2,479,750 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,999,405 Liability price N/A N/A Business purpose loans: Single-family rental loans 466,346 Senior credit spread 65 - 65 bps 65 bps Subordinate credit spread 110 - 1,523 bps 401 bps Senior credit support 35 - 35 % 35 % IO discount rate 9 - 9 % 9 % Prepayment rate (annual CPR) 3 - 3 % 3 % Non-securitizable loan dollar price $ 76 - $ 111 $ 101 Single-family rental loans held by CAFL (2) 3,402,410 Liability price N/A N/A Bridge loans 824,799 Discount rate 4 - 15 % 6 % Multifamily loans held by Freddie Mac K-Series (2) 482,791 Liability price N/A N/A Trading and AFS securities 353,286 Discount rate 2 - 38 % 7 % Prepayment rate (annual CPR) 8 - 58 % 27 % Default rate — - 25 % 4 % Loss severity — - 50 % 24 % CRT dollar price $ 96 - $ 116 $ 104 Servicer advance investments 170,062 Discount rate 2 - 3 % 2 % Prepayment rate (annual CPR) 20 - 30 % 21 % Expected remaining life (3) 5 - 5 years 5 years Mortgage servicing income 2 - 11 bps 9 bps MSRs 12,389 Discount rate 12 - 15 % 13 % Prepayment rate (annual CPR) 6 - 80 % 28 % Per loan annual cost to service $ 95 - $ 95 $ 95 Excess MSRs 29,185 Discount rate 13 - 16 % 15 % Prepayment rate (annual CPR) 21 - 30 % 25 % Excess mortgage servicing income 8 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) September 30, 2021 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) HEIs at Redwood $ 414 Dollar Price $ 92 - $ 124 $ 105 HEIs held by Point HEI entity 167,442 Liability price N/A N/A REO 622 Loss severity 11 - 40 % 22 % Residential loan purchase commitments, net 6,712 Committed sales price $ 102.11 - $ 102.77 $ 102.54 Pull-through rate 4 - 100 % 71 % Whole loan spread to TBA price $ 3.00 - $ 3.00 $ 3.00 Whole loan spread to swap rate 185 - 202 bps 201 bps Prepayment rate (annual CPR) 20 - 20 % 20 % Liabilities ABS issued (2) : At consolidated Sequoia entities 2,482,746 Discount rate 1 - 18 % 3 % Prepayment rate (annual CPR) 7 - 55 % 33 % Default rate — - 36 % 2 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 3,126,405 Discount rate 1 - 13 % 3 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 2 - 18 % 9 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,550,111 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) 451,402 Discount rate 1 - 8 % 2 % At consolidated Point HEI entity (4) 145,437 Discount rate 3 - 15 % 4 % Prepayment rate (annual CPR) 20 - 20 % 20 % Default rate 6 - 6 % 6 % Loss severity 25 - 25 % 25 % Home price appreciation 3 - 4 % 3 % (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 and HEIs held by consolidated entities was based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At September 30, 2021, the fair value of securities we owned at the consolidated Sequoia, CAFL SFR, Freddie Mac SLST, Freddie Mac K-Series, and Point HEI entities was $240 million, $288 million, $451 million, $31 million, and $10 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)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,495,079 $ — $ — $ — $ 1,495,079 Held-for-investment at fair value — 242,234 2,479,750 1,999,405 4,721,389 Total Residential Loans $ 1,495,079 $ 242,234 $ 2,479,750 $ 1,999,405 $ 6,216,468 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 September 30, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 466,346 — $ — $ — $ 466,346 Held-for-investment at fair value — 3,402,410 548,445 276,354 4,227,209 Total Business Purpose Loans $ 466,346 $ 3,402,410 $ 548,445 $ 276,354 $ 4,693,555 December 31, 2020 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL 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 Single-Family Rental Loans Nearly all of the outstanding single-family rental loans at September 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with less than 1% with original maturities of 30 years. Bridge Loans The outstanding bridge loans held-for-investment at September 30, 2021 were first-lien, interest-only loans with original maturities of six to 24 months and were comprised of 69% one-month LIBOR-indexed adjustable-rate loans and 31% fixed-rate loans. At September 30, 2021, we had a $426 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 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 at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 392,620 $ 208,938 $ 195,744 $ 65,517 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 253 7,695 1,567 Fair value of loans transferred from HFS to HFI (1) 332,670 276,354 326,405 N/A Fair value of loans transferred from HFI to HFS (2) — N/A — N/A Mortgage banking activities income (loss) recorded (3) 19,205 3,691 43,191 29 Investment fair value changes recorded (4) — 900 — 6,812 Nine Months Ended Nine Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 957,935 $ 557,327 $ 631,749 $ 351,353 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 9,484 33,843 23,860 Fair value of loans transferred from HFS to HFI (1) 799,375 276,354 925,437 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 N/A — N/A Mortgage banking activities income (loss) recorded (3) 54,675 5,212 54,731 (3,412) Investment fair value changes recorded (4) — 4,142 (20,806) (10,016) (1) Represents the transfer of 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 nine months ended September 30, 2021, we recorded loan origination fee income of $9 million and $22 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, we recorded loan origination fee income of $3 million and $13 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. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 2021 and 2020. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (34,803) $ — $ 88,271 $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (96,934) $ — $ (14,319) $ — (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 September 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 123 1,157 1,092 1,589 Unpaid principal balance $ 451,295 $ 3,207,118 $ 550,711 $ 272,243 Fair value of loans $ 466,346 $ 3,402,411 $ 548,445 $ 276,354 Weighted average coupon 4.57 % 5.27 % 7.48 % 7.19 % Weighted average remaining loan term (years) 7 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 127,930 N/A $ 126,725 N/A Market value of loans pledged as collateral under long-term debt facilities $ 298,014 N/A $ 373,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 7 15 35 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,067 $ 39,423 $ 30,132 $ — Fair value of loans with 90+ day delinquencies (2) $ 2,664 N/A $ 26,525 $ — Number of loans in foreclosure 6 10 34 — Unpaid principal balance of loans in foreclosure $ 4,978 $ 22,004 $ 26,177 $ — Fair value of loans in foreclosure (2) $ 2,619 N/A $ 22,570 $ — December 31, 2020 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (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 N/A Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 N/A 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 September 30, 2021 and December 31, 2020. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 1,958 198 Unpaid principal balance $ 1,464,767 $ 172,748 Fair value of loans $ 1,495,079 $ 176,641 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,478,424 $ 156,355 Delinquency information Number of loans with 90+ day delinquencies 4 1 Unpaid principal balance of loans with 90+ day delinquencies $ 3,159 $ 1,882 Fair value of loans with 90+ day delinquencies $ 2,490 $ 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 nine months ended September 30, 2021 and 2020. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of loans acquired $ 3,167,186 $ 172,162 $ 9,747,867 $ 2,859,813 Principal balance of loans sold 2,360,862 87,868 6,787,490 4,750,615 Principal balance of loans transferred to HFI 448,878 — 1,623,000 274,048 Net market valuation gains (losses) recorded (1) 9,861 (478) 59,568 (15,972) (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 September 30, 2021 and December 31, 2020. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,653 3,022 12,444 Unpaid principal balance $ 278,815 $ 2,447,402 $ 2,022,724 Fair value of loans $ 242,234 $ 2,479,750 $ 1,999,405 Delinquency information Number of loans with 90+ day delinquencies (1) 40 30 1,168 Unpaid principal balance of loans with 90+ day delinquencies $ 14,038 $ 24,438 $ 209,913 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 18 4 305 Unpaid principal balance of loans in foreclosure $ 4,416 $ 2,863 $ 52,319 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 nine months ended September 30, 2021 and 2020. Table 6.5 – Activity of Residential Loans Held-for-Investment at Redwood Three Months Ended September 30, Nine Months Ended September 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) — 218 — (93,314) (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 nine months ended September 30, 2021 and 2020. Table 6.6 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2021 Three Months Ended September 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 $ 464,189 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) (2,580) (11,663) (13,836) 21,938 (5,175) 159,687 Nine Months Ended September 30, 2021 Nine Months Ended September 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 $ 1,669,683 N/A N/A $ 270,506 N/A Net market valuation gains (losses) recorded (2) 9,896 (27,076) 5,177 (38,996) (21,727) 15,254 (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)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,495,079 $ — $ — $ — $ 1,495,079 Held-for-investment at fair value — 242,234 2,479,750 1,999,405 4,721,389 Total Residential Loans $ 1,495,079 $ 242,234 $ 2,479,750 $ 1,999,405 $ 6,216,468 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 September 30, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 466,346 — $ — $ — $ 466,346 Held-for-investment at fair value — 3,402,410 548,445 276,354 4,227,209 Total Business Purpose Loans $ 466,346 $ 3,402,410 $ 548,445 $ 276,354 $ 4,693,555 December 31, 2020 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL 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 Single-Family Rental Loans Nearly all of the outstanding single-family rental loans at September 30, 2021 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with less than 1% with original maturities of 30 years. Bridge Loans The outstanding bridge loans held-for-investment at September 30, 2021 were first-lien, interest-only loans with original maturities of six to 24 months and were comprised of 69% one-month LIBOR-indexed adjustable-rate loans and 31% fixed-rate loans. At September 30, 2021, we had a $426 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 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 at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 392,620 $ 208,938 $ 195,744 $ 65,517 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 253 7,695 1,567 Fair value of loans transferred from HFS to HFI (1) 332,670 276,354 326,405 N/A Fair value of loans transferred from HFI to HFS (2) — N/A — N/A Mortgage banking activities income (loss) recorded (3) 19,205 3,691 43,191 29 Investment fair value changes recorded (4) — 900 — 6,812 Nine Months Ended Nine Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 957,935 $ 557,327 $ 631,749 $ 351,353 Principal balance of loans acquired 2,463 35,713 — — Principal balance of loans sold to third parties — 9,484 33,843 23,860 Fair value of loans transferred from HFS to HFI (1) 799,375 276,354 925,437 N/A Fair value of loans transferred from HFI to HFS (2) 44,922 N/A — N/A Mortgage banking activities income (loss) recorded (3) 54,675 5,212 54,731 (3,412) Investment fair value changes recorded (4) — 4,142 (20,806) (10,016) (1) Represents the transfer of 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 nine months ended September 30, 2021, we recorded loan origination fee income of $9 million and $22 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). For the three and nine months ended September 30, 2020, we recorded loan origination fee income of $3 million and $13 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. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 2021 and 2020. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (34,803) $ — $ 88,271 $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (96,934) $ — $ (14,319) $ — (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 September 30, 2021 and December 31, 2020. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 123 1,157 1,092 1,589 Unpaid principal balance $ 451,295 $ 3,207,118 $ 550,711 $ 272,243 Fair value of loans $ 466,346 $ 3,402,411 $ 548,445 $ 276,354 Weighted average coupon 4.57 % 5.27 % 7.48 % 7.19 % Weighted average remaining loan term (years) 7 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 127,930 N/A $ 126,725 N/A Market value of loans pledged as collateral under long-term debt facilities $ 298,014 N/A $ 373,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 7 15 35 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,067 $ 39,423 $ 30,132 $ — Fair value of loans with 90+ day delinquencies (2) $ 2,664 N/A $ 26,525 $ — Number of loans in foreclosure 6 10 34 — Unpaid principal balance of loans in foreclosure $ 4,978 $ 22,004 $ 26,177 $ — Fair value of loans in foreclosure (2) $ 2,619 N/A $ 22,570 $ — December 31, 2020 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (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 N/A Market value of loans pledged as collateral under long-term debt facilities $ 154,774 N/A $ 544,151 N/A 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)	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at September 30, 2021 and December 31, 2020. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) September 30, 2021 December 31, 2020 Number of loans 28 28 Unpaid principal balance $ 457,123 $ 462,808 Fair value of loans $ 482,791 $ 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 September 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 nine months ended September 30, 2021 and 2020. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net market valuation gains (losses) recorded (1) $ (487) $ 2,340 $ (3,745) $ (61,500) (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)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) September 30, 2021 December 31, 2020 Trading $ 153,010 $ 125,667 Available-for-sale 200,276 218,458 Total Real Estate Securities $ 353,286 $ 344,125
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at September 30, 2021 and December 31, 2020. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Senior Interest-only securities (1) $ 22,494 $ 28,464 Total Senior 22,494 28,464 Mezzanine Sequoia securities — 3,649 Total Mezzanine — 3,649 Subordinate RPL securities 64,845 47,448 Multifamily securities 11,298 5,592 Other third-party residential securities 54,373 40,514 Total Subordinate 130,516 93,554 Total Trading Securities $ 153,010 $ 125,667 (1) Includes $15 million and $13 million of Sequoia certificated mortgage servicing rights at September 30, 2021 and December 31, 2020, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at September 30, 2021 and December 31, 2020. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Senior (1) $ — $ — Mezzanine — 3,577 Subordinate 216,771 242,278 Total Trading Securities $ 216,771 $ 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 nine months ended September 30, 2021 and 2020. Table 9.4 – Trading Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Principal balance of securities acquired $ 10,750 $ 11,000 $ 28,380 $ 77,721 Principal balance of securities sold 750 15,903 53,561 720,517 Net market valuation gains (losses) recorded (1) 1,578 (3,600) 24,725 (224,679) (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 September 30, 2021 and December 31, 2020. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) September 30, 2021 December 31, 2020 Mezzanine Other third-party residential securities $ — $ 2,014 Total Mezzanine — 2,014 Subordinate Sequoia securities 128,874 136,475 Multifamily securities 31,320 43,663 Other third-party residential securities 40,082 36,306 Total Subordinate 200,276 216,444 Total AFS Securities $ 200,276 $ 218,458 The following table provides the activity of available-for-sale securities during the three and nine months ended September 30, 2021 and 2020. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Fair value of securities acquired $ — $ 25,483 $ 1,600 $ 56,664 Fair value of securities sold — — 4,785 55,193
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 September 30, 2021 and December 31, 2020. Table 9.7 – Carrying Value of AFS Securities September 30, 2021 (In Thousands) Mezzanine Subordinate Total Principal balance $ — $ 238,459 $ 238,459 Credit reserve — (29,448) (29,448) Unamortized discount, net — (88,108) (88,108) Amortized cost — 120,903 120,903 Gross unrealized gains — 79,406 79,406 Gross unrealized losses — (33) (33) CECL allowance — — — Carrying Value $ — $ 200,276 $ 200,276 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 nine months ended September 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 Nine Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 40,349 $ 90,216 $ 44,967 $ 95,718 Amortization of net discount — (6,437) — (9,620) Realized credit losses (184) — (433) — Acquisitions — — 2,825 1,208 Sales, calls, other (320) (6,068) (1,312) (15,797) Transfers to (release of) credit reserves, net (10,397) 10,397 (16,599) 16,599 Ending Balance $ 29,448 $ 88,108 $ 29,448 $ 88,108
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 September 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) September 30, 2021 $ — $ — $ — $ 1,600 $ (33) $ 1,567 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 September 30, 2021. Table 9.10 – Significant Credit Quality Indicators September 30, 2021 Subordinate Securities Default rate N/A Loss severity N/A
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 nine months ended September 30, 2021. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (In Thousands) Beginning balance allowance for credit losses $ — $ 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 — (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 nine months ended September 30, 2021 and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Gross realized gains - sales $ — $ — $ 1,507 $ 8,779 Gross realized gains - calls 6,389 — 15,484 — Gross realized losses - sales — — — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 6,389 $ — $ 16,991 $ 4,635

Other Investments (Tables)

Other Investments (Tables)	9 Months Ended
	Sep. 30, 2021
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) September 30, 2021 December 31, 2020 Servicer advance investments $ 170,062 $ 231,489 HEIs 167,856 42,440 Strategic investments 31,108 4,449 Excess MSRs 29,185 34,418 Mortgage servicing rights 12,389 8,815 Other 11,766 26,564 Total Other Investments $ 422,366 $ 348,175
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at September 30, 2021 and December 31, 2020. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) September 30, 2021 December 31, 2020 Principal and interest advances $ 77,116 $ 110,923 Escrow advances (taxes and insurance advances) 62,117 79,279 Corporate advances 20,175 27,454 Total Servicer Advance Receivables $ 159,408 $ 217,656

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments September 30, 2021 December 31, 2020 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 3,213 $ 293,200 $ 224 $ 42,000 TBAs 8,213 2,205,000 18,260 3,520,000 Swaptions 30,415 1,335,000 19,727 1,585,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 9,262 1,687,314 15,027 2,617,254 Total Assets $ 51,103 $ 5,520,514 $ 53,238 $ 7,764,254 Liabilities - Risk Management Derivatives Interest rate swaps $ (74) $ 40,500 $ — $ — TBAs (7,599) 2,190,000 (15,495) 3,105,000 Interest rate futures (749) 133,200 — — Liabilities - Other Derivatives Loan purchase commitments (2,550) 1,084,579 (577) 477,153 Total Liabilities $ (10,972) $ 3,448,279 $ (16,072) $ 3,582,153 Total Derivative Financial Instruments, Net $ 40,131 $ 8,968,793 $ 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 nine months ended September 30, 2021 and 2020. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Net interest expense on cash flows hedges $ — $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (1,041) (1,040) (3,086) (2,148) Total Interest Expense $ (1,041) $ (1,040) $ (3,086) $ (3,008)

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Other Assets	Other assets at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) September 30, 2021 December 31, 2020 Accrued interest receivable $ 41,997 $ 39,445 Investment receivable 32,420 43,176 Deferred tax asset 20,153 871 REO 18,863 8,413 Margin receivable 16,503 4,758 Operating lease right-of-use assets 13,659 15,012 Fixed assets and leasehold improvements (1) 9,344 4,203 Pledged collateral — 1,177 Other 9,254 13,533 Total Other Assets $ 162,193 $ 130,588
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at September 30, 2021 and December 31, 2020 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) September 30, 2021 December 31, 2020 Accrued compensation $ 64,354 $ 24,393 Margin payable 48,298 14,728 Accrued interest payable 34,545 34,858 Payable to non-controlling interests (1) 31,781 16,941 Operating lease liabilities 15,771 16,687 Accrued income taxes payable 11,336 5,614 Residential loan and MSR repurchase reserve 9,003 8,631 Guarantee obligations 7,902 10,039 Accrued operating expenses 4,068 5,509 Bridge loan holdbacks 3,784 5,708 Deferred consideration — 14,579 Other 20,734 21,653 Total Accrued Expenses and Other Liabilities $ 251,576 $ 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 SFR entities during the nine months ended September 30, 2021. Table 12.3 – REO Activity Nine Months Ended September 30, 2021 (In Thousands) Bridge (1) Legacy Sequoia Freddie Mac SLST CAFL SFR Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 7,074 65 2,591 11,924 21,654 Liquidations (2) (7,387) (607) (1,555) (1,990) (11,539) Changes in fair value, net 536 178 276 (655) 335 Balance at End of Period $ 4,823 $ 274 $ 1,958 $ 11,808 $ 18,863 (1) Includes activity of bridge loans at Redwood and at consolidated CAFL bridge entity. (2) For the nine months ended September 30, 2021, REO liquidations resulted in $0.3 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 SFR entities at September 30, 2021 and December 31, 2020. Table 12.4 – REO Assets Number of REO assets Bridge Legacy Sequoia Freddie Mac SLST CAFL SFR Total At September 30, 2021 5 2 20 2 29 At December 31, 2020 3 3 9 2 17

Short-Term Debt (Tables)

Short-Term Debt (Tables)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020. Table 13.1 – Short-Term Debt September 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 7 $ 1,335,464 $ 2,700,000 1.89 % 11/2021-8/2022 156 Business purpose loan warehouse 2 183,800 350,000 3.39 % 3/2022-7/2022 201 Real estate securities repo 3 79,766 — 1.23 % 10/2021-12/2021 34 Total Short-Term Debt Facilities 12 1,599,030 Servicer advance financing 1 151,911 260,000 1.89 % 11/2021 61 Total Short-Term Debt $ 1,750,941 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 September 30, 2021 and December 31, 2020. Table 13.2 – Collateral for Short-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Collateral Type Held-for-sale residential loans $ 1,478,424 $ 156,355 Business purpose loans 254,655 127,029 Real estate securities On balance sheet 14,367 23,193 Sequoia securitizations (1) 62,075 63,105 Freddie Mac K-Series securitization (1) 31,388 28,255 Total real estate securities owned 107,830 114,553 Restricted cash and other assets 1,709 315 Total Collateral for Short-Term Debt Facilities 1,842,618 398,252 Cash 12,975 9,978 Restricted cash 19,872 23,220 Servicer advances 159,408 217,656 Total Collateral for Servicer Advance Financing 192,255 250,854 Total Collateral for Short-Term Debt $ 2,034,873 $ 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 September 30, 2021. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities September 30, 2021 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 278,663 $ 1,056,801 $ 1,335,464 Business purpose loans — — 183,800 183,800 Real estate securities 43,800 35,966 — 79,766 Total Secured Short-Term Debt 43,800 314,629 1,240,601 1,599,030 Servicer advance financing — 151,911 — 151,911 Total Short-Term Debt $ 43,800 $ 466,540 $ 1,240,601 $ 1,750,941

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	The carrying values of ABS issued by our consolidated securitization entities at September 30, 2021 and December 31, 2020, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued September 30, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac Point HEI Total (Dollars in Thousands) Certificates with principal balance $ 273,957 $ 2,199,488 $ 3,134,946 $ 1,630,252 $ 420,654 $ 145,320 $ 7,804,617 Interest-only certificates 739 21,003 189,946 19,787 10,885 — 242,360 Market valuation adjustments (35,249) 22,808 68,684 60,625 19,863 117 136,848 ABS Issued, Net $ 239,447 $ 2,243,299 $ 3,393,576 $ 1,710,664 $ 451,402 $ 145,437 $ 8,183,825 Range of weighted average interest rates, by series (3) 0.49% to 1.45% 2.34% to 5.07% 2.34% to 5.21% 3.50% to 4.75% 3.41 % 3.27 % Stated maturities (3) 2024 - 2036 2047 - 2051 2021 - 2031 2028 - 2059 2025 2052 Number of series 20 13 16 3 1 1 December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST (2) Freddie Mac K-Series Point HEI 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 (3) 0.35% to 1.55% 2.25% to 5.04% 2.68% to 5.42% 3.50% to 4.75% 3.39 % — % Stated maturities (3) 2024 - 2036 2047 - 2050 2021 - 2031 2028 - 2059 2025 — Number of series 20 10 14 3 1 — (1) Includes $270 million (principal balance) of ABS issued by a CAFL bridge securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 2021. (2) Includes $163 million and $205 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 2021 and December 31, 2020, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and Point HEI entities is subject to early redemption and interest rate step-ups as described below.
Accrued Interest Payable on Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at September 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) September 30, 2021 December 31, 2020 Legacy Sequoia $ 107 $ 141 Sequoia 5,918 4,697 CAFL 10,760 10,122 Freddie Mac SLST (1) 4,925 5,656 Freddie Mac K-Series 1,195 1,177 Total Accrued Interest Payable on ABS Issued $ 22,905 $ 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)	9 Months Ended
	Sep. 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 September 30, 2021. Table 15.1 – Long-Term Debt September 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 $ 147,182 $ (417) $ 146,765 N/A 4.21 % 9/2024 CAFL Facility A 102,370 (429) 101,941 N/A 4.21 % 2/2025 Facility B 95,011 (439) 94,572 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility C 105,961 (320) 105,641 250,000 L + 3.00% N/A Recourse BPL Financing Facility D 168,228 — 168,228 450,000 L + 3.10% 6/2023 Facility E 230,883 (141) 230,742 250,000 L + 3.00% 9/2023 Total Long-Term Debt Facilities 849,635 (1,746) 847,889 Convertible notes 4.75% convertible senior notes 198,629 (2,098) 196,531 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,262) 147,938 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,582) 168,510 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (791) 138,709 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,510,056 $ (10,479) $ 1,499,577 (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 September 30, 2021 and December 31, 2020. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Long-term debt facilities $ 900 $ 1,799 Convertible notes 4.75% convertible senior notes 1,206 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,948 2,474 Trust preferred securities and subordinated notes 572 669 Total Accrued Interest Payable on Long-Term Debt $ 9,410 $ 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 September 30, 2021 and December 31, 2020. Table 15.2 – Collateral for Long-Term Debt (In Thousands) September 30, 2021 December 31, 2020 Collateral Type Bridge loans $ 373,597 $ 544,151 Single-family rental loans 298,014 154,774 Real estate securities Sequoia securitizations (1) 246,892 249,446 CAFL securitizations (1) 256,976 114,044 Total real estate securities owned 503,868 363,490 Other BPL investments — 21,414 Restricted cash — 1,100 Total Collateral for Long-Term Debt $ 1,175,479 $ 1,084,929

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments by Year	The following table presents our future lease commitments at September 30, 2021. Table 16.1 – Future Lease Commitments by Year (In Thousands) September 30, 2021 2021 (3 months) $ 928 2022 3,714 2023 3,235 2024 2,411 2025 1,983 2026 and thereafter 6,128 Total Lease Commitments 18,399 Less: Imputed interest (2,628) Operating Lease Liabilities $ 15,771

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended September 30, 2021 Three Months Ended September 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 $ 88,251 $ (78,511) $ 53,246 $ (82,637) Other comprehensive (loss) income (2,658) — 8,236 — Amounts reclassified from other (6,200) 1,041 (445) 1,040 Net current-period other comprehensive (loss) income (8,858) 1,041 7,791 1,040 Balance at End of Period $ 79,393 $ (77,470) $ 61,037 $ (81,597) Nine Months Ended September 30, 2021 Nine Months Ended September 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) 19,552 — (19,890) (32,806) Amounts reclassified from other (16,495) 3,087 (11,525) 2,148 Net current-period other comprehensive income (loss) 3,057 3,087 (31,415) (30,658) Balance at End of Period $ 79,393 $ (77,470) $ 61,037 $ (81,597)
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 nine months ended September 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 September 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 $ — $ (445) Gain on sale of AFS securities Realized gains, net (6,200) — $ (6,200) $ (445) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,041 $ 1,040 $ 1,041 $ 1,040 Amount Reclassified From Affected Line Item in the Nine Months Ended September 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) $ 1,026 Gain on sale of AFS securities Realized gains, net (16,107) (12,552) $ (16,495) $ (11,526) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 3,087 $ 2,148 $ 3,087 $ 2,148
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 nine months ended September 30, 2021 and 2020. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, except Share Data) 2021 2020 2021 2020 Basic Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 88,286 $ 141,812 $ 275,568 $ (636,142) Less: Dividends and undistributed earnings allocated to participating securities (2,984) (4,067) (8,979) (1,427) Net income (loss) allocated to common shareholders $ 85,302 $ 137,745 $ 266,589 $ (637,569) Basic weighted average common shares outstanding 112,995,847 113,403,102 112,754,691 113,952,308 Basic Earnings (Loss) per Common Share $ 0.75 $ 1.21 $ 2.36 $ (5.60) Diluted Earnings (Loss) per Common Share: Net income (loss) attributable to Redwood $ 88,286 $ 141,812 $ 275,568 $ (636,142) Less: Dividends and undistributed earnings allocated to participating securities (2,747) (3,512) (8,151) (1,427) Add back: Interest expense on convertible notes for the period, net of tax 6,870 6,990 20,585 — Net income (loss) allocated to common shareholders $ 92,409 $ 145,290 $ 288,002 $ (637,569) Weighted average common shares outstanding 112,995,847 113,403,102 112,754,691 113,952,308 Net effect of dilutive equity awards 292,749 — 253,819 — Net effect of assumed convertible notes conversion to common shares 28,566,875 28,566,875 28,566,875 — Diluted weighted average common shares outstanding 141,855,471 141,969,977 141,575,385 113,952,308 Diluted Earnings (Loss) per Common Share $ 0.65 $ 1.02 $ 2.03 $ (5.60)

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	9 Months Ended
	Sep. 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 $26 million at September 30, 2021, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Nine Months Ended September 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 5,766 — 335 8,471 Performance-based valuation adjustment — — — 1,072 — 1,072 Equity grant forfeitures (2) (670) (550) — — (1,222) Equity compensation expense (375) (1,188) (5,681) (2,002) (251) (9,497) Unrecognized Compensation Cost at End of Period $ 187 $ 4,052 $ 17,301 $ 4,864 $ 84 $ 26,488

Mortgage Banking Activities, _2

Mortgage Banking Activities, Net (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 19.1 – Mortgage Banking Activities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 27,862 $ 12,589 $ 75,496 $ 19,151 Trading securities (2) 32 — (342) — Risk management derivatives (3) 3,963 (10) 37,187 (31,304) Other income (expense), net (4) 1,089 (715) 3,305 (7,069) Total residential mortgage banking activities, net 32,946 11,864 115,646 (19,222) Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) 18,461 43,191 54,675 56,209 Risk management derivatives (3) (424) (89) 930 (21,627) Bridge loans, at fair value 3,433 938 6,702 (4,256) Other income, net (5) 8,747 3,491 22,236 13,407 Total business purpose mortgage banking activities, net 30,217 47,531 84,543 43,733 Mortgage Banking Activities, Net $ 63,163 $ 59,395 $ 200,189 $ 24,511 (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)	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020. Table 20.1 – Other Income Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 MSR (loss) income, net (1) $ 295 $ (2,362) $ 949 $ (5,595) Agency risk sharing agreement income 575 1,200 2,318 3,146 FHLBC capital stock dividend 3 116 53 1,201 Bridge loan fees 1,131 716 2,735 2,520 Other 384 216 2,302 2,707 Other Income, Net $ 2,388 $ (114) $ 8,357 $ 3,979 (1) Includes servicing fees and fair value changes for MSRs and associated hedges, net.

General and Administrative Ex_2

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses (Tables)	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, Nine Months Ended September 30, (In Thousands) 2021 2020 2021 2020 General and Administrative Expenses Fixed compensation expense $ 11,285 $ 10,103 $ 34,359 $ 36,605 Annual variable compensation 19,844 5,882 51,021 9,171 Long-term incentive award expense (1) 4,915 2,639 14,766 7,896 Acquisition-related equity compensation expense (2) 1,189 1,212 3,613 3,636 Systems and consulting 2,975 2,145 9,224 7,752 Office costs 2,197 1,859 6,029 5,854 Accounting and legal 1,197 1,601 3,132 6,605 Corporate costs 964 831 2,528 2,128 Other 3,126 1,358 7,165 5,185 Total General and Administrative Expenses 47,692 27,630 131,837 84,832 Loan Acquisition Costs Commissions 1,906 879 4,830 3,027 Underwriting costs 2,351 771 5,872 3,289 Transfer and holding costs 364 508 1,226 1,400 Total Loan Acquisition Costs 4,621 2,158 11,928 7,716 Other Expenses Goodwill impairment expense — — — 88,675 Amortization of purchase-related intangible assets 3,873 3,873 11,619 12,052 Other 150 3,915 485 3,559 Total Other Expenses 4,023 7,788 12,104 104,286 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 56,336 $ 37,576 $ 155,869 $ 196,834 (1) For the three months ended September 30, 2021, long-term incentive award expense includes $3 million of expense for awards settleable in shares of our common stock and $1 million of expense for awards settleable in cash. For the nine months ended September 30, 2021, long-term incentive award expense includes $10 million of expense for awards settleable in shares of our common stock and $4 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)	9 Months Ended
	Sep. 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 September 30, 2021 and 2020. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate September 30, 2021 September 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 (13.1) % (23.6) % Change in valuation allowance (6.8) % (4.0) % Dividends paid deduction (1) (4.9) % — % Effective Tax Rate 4.8 % 2.0 % (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 nine months ended September 30, 2020, the dividends paid deduction is 0% because there was no REIT taxable income available to apply against the dividends paid. This was due to our REIT incurring a taxable loss during the period.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Business Segment Financial Information	The following tables present financial information by segment for the three and nine months ended September 30, 2021 and 2020. Table 23.1 – Business Segment Financial Information Three Months Ended September 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 44,220 $ 67,235 $ 33,218 $ 1,049 $ 145,722 Interest expense (25,395) (46,834) (21,370) (10,155) (103,754) Net interest income 18,825 20,401 11,848 (9,106) 41,968 Non-interest income Mortgage banking activities, net 32,946 30,217 — — 63,163 Investment fair value changes, net 2,285 3,470 20,569 (247) 26,077 Other income, net 874 1,184 — 330 2,388 Realized gains, net 6,389 314 — — 6,703 Total non-interest income (loss), net 42,494 35,185 20,569 83 98,331 General and administrative expenses (8,989) (13,987) (1,415) (23,301) (47,692) Loan acquisition costs (2,395) (2,175) (51) — (4,621) Other expenses — (3,873) (150) — (4,023) (Provision for) benefit from income taxes (11,139) (3,485) (335) 19,282 4,323 Segment Contribution $ 38,796 $ 32,066 $ 30,466 $ (13,042) Net Income $ 88,286 Non-cash amortization (expense) income, net $ 5,862 $ (4,713) $ 276 $ (1,995) $ (570) Nine Months Ended September 30, 2021 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 104,801 $ 202,155 $ 102,180 $ 3,586 $ 412,722 Interest expense (65,488) (151,351) (66,883) (30,649) (314,371) Net interest income 39,313 50,804 35,297 (27,063) 98,351 Non-interest income Mortgage banking activities, net 115,646 84,543 — — 200,189 Investment fair value changes, net 8,958 10,551 102,303 (1,168) 120,644 Other income, net 4,566 3,044 5 742 8,357 Realized gains, net 15,484 812 1,507 — 17,803 Total non-interest income, net 144,654 98,950 103,815 (426) 346,993 General and administrative expenses (30,539) (38,834) (3,476) (58,988) (131,837) Loan acquisition costs (5,698) (6,088) (138) (4) (11,928) Other expenses (6) (11,523) (592) 17 (12,104) (Provision for) benefit from income taxes (25,289) (6,988) (912) 19,282 (13,907) Segment Contribution $ 122,435 $ 86,321 $ 133,994 $ (67,182) Net Income $ 275,568 Non-cash amortization (expense) income, net $ 8,867 $ (16,154) $ 317 $ (5,845) $ (12,815) Three Months Ended September 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 26,672 $ 55,930 $ 37,576 $ 1,804 $ 121,982 Interest expense (21,401) (44,159) (24,238) (10,613) (100,411) Net interest income 5,271 11,771 13,338 (8,809) 21,571 Non-interest income Mortgage banking activities, net 11,864 47,531 — — 59,395 Investment fair value changes, net 2,443 16,892 87,890 (178) 107,047 Other income, net (2,011) 623 340 934 (114) Realized gains, net — — 602 — 602 Total non-interest income, net 12,296 65,046 88,832 756 166,930 General and administrative expenses (4,602) (9,321) (709) (12,998) (27,630) Loan acquisition costs (304) (1,660) (194) — (2,158) Other expenses (3,309) (3,874) (470) (135) (7,788) (Provision for) benefit from income taxes (826) (8,544) 257 — (9,113) Segment Contribution $ 8,526 $ 53,418 $ 101,054 $ (21,186) Net Income $ 141,812 Non-cash amortization income (expense), net $ 1,785 $ (6,719) $ 117 $ (1,516) $ (6,333) Nine Months Ended September 30, 2020 (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total Interest income $ 123,956 $ 162,732 $ 155,583 $ 7,738 $ 450,009 Interest expense (87,725) (113,143) (111,666) (37,214) (349,748) Net interest income 36,231 49,589 43,917 (29,476) 100,261 Non-interest income Mortgage banking activities, net (19,222) 43,733 — — 24,511 Investment fair value changes, net (159,107) (84,837) (366,696) (917) (611,557) Other income, net (2,278) 3,493 1,072 1,692 3,979 Realized gains, net 2,001 — 3,236 25,182 30,419 Total non-interest income, net (178,606) (37,611) (362,388) 25,957 (552,648) General and administrative expenses (12,901) (29,977) (4,230) (37,724) (84,832) Loan acquisition costs (1,512) (5,630) (567) (7) (7,716) Other expenses (3,309) (100,743) 347 (581) (104,286) Benefit from income taxes 7,827 477 4,775 — 13,079 Segment Contribution $ (152,270) $ (123,895) $ (318,146) $ (41,831) Net Loss $ (636,142) Non-cash amortization income (expense), net $ 732 $ (18,035) $ 1,170 $ (3,244) $ (19,377) 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 nine months ended September 30, 2021 and 2020. Table 23.2 – Components of Corporate/Other Three Months Ended September 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,042 $ 7 $ 1,049 $ 1,795 $ 9 $ 1,804 Interest expense (641) (9,514) (10,155) (1,059) (9,554) (10,613) Net interest income 401 (9,507) (9,106) 736 (9,545) (8,809) Non-interest income Investment fair value changes, net (247) — (247) (81) (97) (178) Other income — 330 330 — 934 934 Total non-interest income, net (247) 330 83 (81) 837 756 General and administrative expenses — (23,301) (23,301) — (12,998) (12,998) Other expenses — — — — (135) (135) Provision for income taxes — 19,282 19,282 — — — Total $ 154 $ (13,196) $ (13,042) $ 655 $ (21,841) $ (21,186) Nine Months Ended September 30, 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 3,559 $ 27 $ 3,586 $ 7,674 $ 64 $ 7,738 Interest expense (2,271) (28,378) (30,649) (5,099) (32,115) (37,214) Net interest income 1,288 (28,351) (27,063) 2,575 (32,051) (29,476) Non-interest income Investment fair value changes, net (1,162) (6) (1,168) (702) (215) (917) Other income — 742 742 — 1,692 1,692 Realized gains, net — — — — 25,182 25,182 Total non-interest income, net (1,162) 736 (426) (702) 26,659 25,957 General and administrative expenses — (58,988) (58,988) — (37,724) (37,724) Loan acquisition costs — (4) (4) — (7) (7) Other expenses — 17 17 — (581) (581) Provision for income taxes — 19,282 19,282 — — — Total $ 126 $ (67,308) $ (67,182) $ 1,873 $ (43,704) $ (41,831) (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 September 30, 2021 and December 31, 2020. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Lending Business Purpose Lending Third-Party Investments Corporate/ Total September 30, 2021 Residential loans $ 3,974,829 $ — $ 1,999,405 $ 242,234 $ 6,216,468 Business purpose loans — 4,693,555 — — 4,693,555 Multifamily loans — — 482,791 — 482,791 Real estate securities 150,368 — 202,918 — 353,286 Other investments 12,389 6,767 379,102 24,108 422,366 Intangible assets — 45,246 — — 45,246 Total assets 4,219,950 4,860,226 3,088,815 903,723 13,072,714 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)	9 Months Ended
	Sep. 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			9 Months Ended
	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)shares	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)partnership	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2
VIE, ownership interest rate (as a percent)				80.00%
Amortization of purchase-related intangible assets	$ 3,873		$ 3,873	$ 11,619	$ 12,052
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	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 45,246
Carrying value	45,246
5 Arches LLC and CoreVest
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	45,246	$ 81,300
Accumulated amortization	(36,054)
Carrying value	$ 45,246	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	$ 32,628	45,300
Accumulated amortization	(12,672)
Carrying value	$ 32,628	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	$ 8,748	18,100
Accumulated amortization	(9,352)
Carrying value	$ 8,748	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	$ 2,694	9,500
Accumulated amortization	(6,806)
Carrying value	$ 2,694	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	$ 1,139	4,000
Accumulated amortization	(2,861)
Carrying value	$ 1,139	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	$ 37	1,800
Accumulated amortization	(1,763)
Carrying value	$ 37	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	Sep. 30, 2021USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2021 (3 months)	$ 3,685
2022	12,800
2023	10,091
2024	7,073
2025 and thereafter	11,597
Total Future Intangible Asset Amortization	$ 45,246

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 51,103	$ 53,238
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(10,972)	(16,072)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(1,423,652)	(230,539)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,423,652)	(230,539)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,419,582	228,467
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		4,070	1,061
Net Amount		0	(1,011)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		33,628	19,951
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		33,628	19,951
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(74)	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(32,408)	(7,769)
Net Amount		1,146	12,182
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(74)
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(74)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		74
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0
Net Amount		0
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		8,213	18,260
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		8,213	18,260
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(4,278)	(13,423)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(3,117)	(4,658)
Net Amount		818	179
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(7,599)	(15,495)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(7,599)	(15,495)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		4,278	13,423
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		3,321	1,061
Net Amount		0	(1,011)
Futures
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(749)
Gross Amounts Offset in Consolidated Balance Sheet		0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(749)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		749
Net Amount		0
Interest Rate Agreement, TBAs, and Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		41,841	38,211
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		41,841	38,211
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(4,352)	(13,423)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(35,525)	(12,427)
Net Amount		1,964	12,361
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(1,335,464)	(137,269)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(1,335,464)	(137,269)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,335,464	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)		(79,766)	(77,775)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(79,766)	(77,775)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		79,766	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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)entity	Sep. 30, 2021USD ($)entitypartnership
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership		2
VIE, ownership interest rate (as a percent)		80.00%
Loans for sale at fair value that were acquired	$ 151	$ 151
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 entities called | entity	2	6
Number of securitization entities to which asset transferred (in entities) | entity	50	50
Unpaid principal balance of loans purchased	$ 66	$ 167
Gain related to called security	$ 6	$ 15
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of entities called | entity	0	1
Loans transferred to held-for-sale		$ 45

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entities Accounted for as Collateralized Financing Entities (Details) $ in Thousands		Sep. 30, 2021USD ($)investment	Dec. 31, 2020USD ($)investment
Variable Interest Entity [Line Items]
Other investments	[1]	$ 422,366	$ 348,175
Cash and cash equivalents	[1]	556,989	461,260
Restricted cash	[1]	88,717	83,190
Accrued interest receivable		41,997	39,445
Other assets	[1]	162,193	130,588
Total Assets	[1]	13,072,714	10,355,066
Short-term debt	[1]	1,750,941	522,609
Accrued interest payable		34,545	34,858
Accrued expenses and other liabilities	[1]	251,576	179,340
Asset-backed securities issued	[1]	8,183,825	7,100,661
Total liabilities	[1]	11,696,891	9,244,167
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets		9,358,317	8,141,069
Total liabilities		8,391,761	7,348,713
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		355,322	251,773
Cash and cash equivalents		12,977	11,579
Restricted cash		25,053	23,368
Accrued interest receivable		30,009	30,587
Other assets		21,738	9,937
Total Assets		9,051,689	8,141,069
Short-term debt		151,910	208,375
Accrued interest payable		22,288	21,274
Accrued expenses and other liabilities		32,799	18,403
Asset-backed securities issued		7,756,101	6,900,362
Total liabilities		7,963,098	7,148,414
Fair value of our investments		$ 1,080,553	$ 992,655
Number of VIEs | investment		56	50
Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 4,721,389	$ 4,072,410
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	4,227,209	3,890,959
Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,402,410	3,249,194
Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		482,791	492,221
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		148	148
Accrued interest receivable		232	305
Other assets		275	638
Total Assets		242,889	287,026
Short-term debt		0	0
Accrued interest payable		108	141
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		239,447	282,326
Total liabilities		239,555	282,467
Fair value of our investments		$ 3,062	$ 4,559
Number of VIEs | investment		20	20
Legacy Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 242,234	$ 285,935
Legacy Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Legacy Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		7,869	6,802
Other assets		0	0
Total Assets		2,487,619	1,572,124
Short-term debt		0	0
Accrued interest payable		5,918	4,697
Accrued expenses and other liabilities		0	50
Asset-backed securities issued		2,243,299	1,347,357
Total liabilities		2,249,217	1,352,104
Fair value of our investments		$ 236,451	$ 220,020
Number of VIEs | investment		13	10
Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 2,479,750	$ 1,565,322
Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
CAFL | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		13,451	13,055
Other assets		13,172	2,930
Total Assets		3,429,033	3,265,179
Short-term debt		0	0
Accrued interest payable		10,691	10,278
Accrued expenses and other liabilities		224	0
Asset-backed securities issued		3,126,405	3,013,093
Total liabilities		3,137,320	3,023,371
Fair value of our investments		$ 287,813	$ 241,808
Number of VIEs | investment		15	14
CAFL | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
CAFL | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,402,410	3,249,194
CAFL | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		6,068	6,754
Other assets		1,958	646
Total Assets		2,007,431	2,228,553
Short-term debt		0	0
Accrued interest payable		4,279	4,846
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		1,550,111	1,793,620
Total liabilities		1,554,390	1,798,466
Fair value of our investments		$ 451,252	$ 430,087
Number of VIEs | investment		3	2
Freddie Mac SLST | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 1,999,405	$ 2,221,153
Freddie Mac SLST | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		1,321	1,337
Other assets		0	0
Total Assets		484,112	493,558
Short-term debt		0	0
Accrued interest payable		1,195	1,177
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		451,402	463,966
Total liabilities		452,597	465,143
Fair value of our investments		$ 31,389	$ 28,415
Number of VIEs | investment		1	1
Freddie Mac K-Series | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
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 | Collateralized Financing Entities
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 | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		482,791	492,221
Servicing Investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		187,880	251,773
Cash and cash equivalents		12,977	11,579
Restricted cash		19,872	23,220
Accrued interest receivable		1,068	2,334
Other assets		6,283	5,723
Total Assets		228,080	294,629
Short-term debt		151,910	208,375
Accrued interest payable		97	135
Accrued expenses and other liabilities		15,835	18,353
Asset-backed securities issued		0	0
Total liabilities		167,842	226,863
Fair value of our investments		$ 60,238	$ 67,766
Number of VIEs | investment		3	3
Servicing Investment | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Servicing Investment | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Servicing Investment | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Point HEI | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		167,442	0
Cash and cash equivalents		0	0
Restricted cash		5,033	0
Accrued interest receivable		0	0
Other assets		50	0
Total Assets		172,525	0
Short-term debt		0	0
Accrued interest payable		0	0
Accrued expenses and other liabilities		16,740	0
Asset-backed securities issued		145,437	0
Total liabilities		162,177	0
Fair value of our investments		$ 10,348	$ 0
Number of VIEs | investment		1	0
Point HEI | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Point HEI | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Point HEI | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Variable Interest Entity [Line Items]
Interest income	$ 145,722	$ 121,982	$ 412,722	$ 450,009
Interest expense	(103,754)	(100,411)	(314,371)	(349,748)
Net Interest Income	41,968	21,571	98,351	100,261
Investment fair value changes, net	26,077	107,047	120,644	(611,557)
Total non-interest income (loss), net	98,331	166,930	346,993	(552,648)
General and administrative expenses	(47,692)	(27,630)	(131,837)	(84,832)
Net Income (Loss)	88,286	141,812	275,568	(636,142)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	96,090	89,912	289,878	303,264
Interest expense	(72,205)	(66,756)	(217,994)	(235,932)
Net Interest Income	23,885	23,156	71,884	67,332
Investment fair value changes, net	18,380	101,420	78,323	(189,448)
Other income	10		10
Total non-interest income (loss), net	18,390	101,420	78,333	(189,448)
General and administrative expenses	(60)	(41)	(150)	(784)
Other expenses	(149)	471	591	(346)
Net Income (Loss)	42,066	124,064	149,476	(122,554)
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	1,042	1,795	3,559	7,674
Interest expense	(641)	(1,059)	(2,271)	(5,099)
Net Interest Income	401	736	1,288	2,575
Investment fair value changes, net	(247)	(81)	(1,162)	(702)
Other income	0		0
Total non-interest income (loss), net	(247)	(81)	(1,162)	(702)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	154	655	126	1,873
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	18,867	20,919	48,842	68,566
Interest expense	(15,368)	(17,828)	(38,848)	(58,455)
Net Interest Income	3,499	3,091	9,994	10,111
Investment fair value changes, net	3,314	7,851	13,118	(22,065)
Other income	0		0
Total non-interest income (loss), net	3,314	7,851	13,118	(22,065)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	6,813	10,942	23,112	(11,954)
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	48,723	36,181	152,445	99,169
Interest expense	(37,415)	(26,383)	(118,469)	(72,768)
Net Interest Income	11,308	9,798	33,976	26,401
Investment fair value changes, net	2,943	9,692	6,354	(41,841)
Other income	10		10
Total non-interest income (loss), net	2,953	9,692	6,364	(41,841)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	14,261	19,490	40,340	(15,440)
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	18,707	21,696	58,372	64,869
Interest expense	(13,303)	(15,473)	(41,698)	(47,495)
Net Interest Income	5,404	6,223	16,674	17,374
Investment fair value changes, net	13,849	82,214	54,282	(33,081)
Other income	0		0
Total non-interest income (loss), net	13,849	82,214	54,282	(33,081)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	19,253	88,437	70,956	(15,707)
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,846	4,918	14,492	49,960
Interest expense	(4,460)	(4,426)	(13,294)	(47,154)
Net Interest Income	386	492	1,198	2,806
Investment fair value changes, net	554	2,166	11,330	(82,744)
Other income	0		0
Total non-interest income (loss), net	554	2,166	11,330	(82,744)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	940	2,658	12,528	(79,938)
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	3,905	4,403	12,168	13,026
Interest expense	(1,018)	(1,587)	(3,414)	(4,961)
Net Interest Income	2,887	2,816	8,754	8,065
Investment fair value changes, net	(2,080)	(422)	(5,646)	(9,015)
Other income	0		0
Total non-interest income (loss), net	(2,080)	(422)	(5,646)	(9,015)
General and administrative expenses	(60)	(41)	(150)	(784)
Other expenses	(149)	471	591	(346)
Net Income (Loss)	598	1,882	2,367	(1,388)
Point HEI | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net Interest Income	0	0	0	0
Investment fair value changes, net	47	0	47	0
Other income	0		0
Total non-interest income (loss), net	47	0	47	0
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net Income (Loss)	$ 47	$ 0	$ 47	$ 0

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 0	$ 0	$ 1,231,803	$ 1,573,703
Trading securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	0	0	7,774	43,362
AFS securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 0	$ 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 0	$ 0	$ 1,266,063	$ 1,610,761
MSR fees received	1,095	2,280	4,038	7,445
Funding of compensating interest, net	54	4	(116)	(293)
Cash flows received on retained securities	$ 16,724	$ 5,873	$ 42,117	$ 19,242

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	9 Months Ended
	Sep. 30, 2021	Sep. 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	11.00%	41.00%
Discount rates	15.00%	16.00%
Credit loss assumptions	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	11.00%	13.00%
Discount rates	6.00%	6.00%
Credit loss assumptions	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	Sep. 30, 2021	Dec. 31, 2020
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	$ 200,276	$ 218,458
Servicing asset, fair value	159,408	217,656
Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Maximum loss exposure	153,322	165,870
Assets transferred:
Principal balance of loans outstanding	5,542,244	7,728,432
Principal balance of loans 30+ days delinquent	32,422	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	18,380	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	128,874	136,475
Mortgage servicing rights
On-balance sheet assets, at fair value:
Servicing asset, fair value	12,389	8,815
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Servicing asset, fair value	$ 6,068	$ 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	9 Months Ended	12 Months Ended
	Sep. 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	$ 6,068	$ 8,413
Expected life (in years)	2 years	2 years
Prepayment speed assumption (annual CPR)	36.00%	37.00%
Decrease in fair value from:
10% adverse change	$ 502	$ 906
25% adverse change	$ 1,173	$ 2,058
Discount rate assumption	12.00%	12.00%
Decrease in fair value from:
100 basis point increase	$ 134	$ 196
200 basis point increase	261	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	$ 18,380	$ 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	$ 1,173	$ 1,557
25% adverse change	$ 2,789	$ 3,754
Discount rate assumption	18.00%	21.00%
Decrease in fair value from:
100 basis point increase	$ 417	$ 337
200 basis point increase	$ 812	$ 659
Credit loss assumption	0.34%	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	$ 128,874	$ 140,124
Expected life (in years)	8 years	8 years
Prepayment speed assumption (annual CPR)	32.00%	33.00%
Decrease in fair value from:
10% adverse change	$ 57	$ 452
25% adverse change	$ 141	$ 2,298
Discount rate assumption	3.80%	5.00%
Decrease in fair value from:
100 basis point increase	$ 9,353	$ 9,769
200 basis point increase	$ 17,829	$ 18,650
Credit loss assumption	0.34%	0.41%
Decrease in fair value from:
10% higher losses	$ 2,190	$ 2,409
25% higher losses	$ 5,473	$ 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		Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 353,286	$ 344,125
Other assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		217,400	200,801
Other assets | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		4,114	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		201,918	173,523
Other assets | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		206,032	186,668
Other assets | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 11,368	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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		Sep. 30, 2021	Dec. 31, 2020
Assets
Real estate securities		$ 153,010	$ 125,667
MSRs		159,408	217,656
Derivative assets	[1]	51,103	53,238
Pledged collateral		0	1,177
Liabilities
Derivative liabilities	[1]	10,972	16,072
ABS issued, net, Fair value		7,756,101	6,900,362
Residential Loans
Assets
MSRs		170,062	231,489
Carrying Value
Assets
Real estate securities		353,286	344,125
Other financial instruments		17,574	18,847
Cash and cash equivalents		556,989	461,260
Restricted cash		88,717	83,190
Derivative assets		51,103	53,238
Margin receivable		16,503	4,758
FHLBC stock		10	5,000
Pledged collateral		0	1,177
Liabilities
Margin payable		48,298	0
Guarantee obligation		7,902	10,039
Derivative liabilities		10,972	16,072
ABS issued, net, Fair value		7,756,101	6,900,362
ABS issued, net, Amortized cost		427,724	200,299
Other long-term debt, net (5)		847,889	774,726
Convertible notes, net (5)		512,979	511,085
Trust preferred securities and subordinated notes, net (5)		138,709	138,674
Carrying Value | Servicer Advance Investments
Assets
MSRs		170,062	231,489
Carrying Value | MSRs
Assets
MSRs		12,389	8,815
Carrying Value | Excess MSRs
Assets
REO		29,185	34,418
Carrying Value | REO
Assets
REO		18,863	8,413
Carrying Value | Short-term debt
Liabilities
Short-term debt		1,750,941	522,609
Carrying Value | Residential Loans | Residential loans, at fair value
Assets
Loans, held-for-sale		1,495,044	176,604
Carrying Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		4,721,389	4,072,410
Carrying Value | Residential Loans | Business purpose residential loans, held-for-sale
Assets
Loans, held-for-sale		466,346	245,394
Carrying Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		4,227,209	3,890,959
Carrying Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		482,791	492,221
Fair Value
Assets
Real estate securities		353,286	344,125
Other financial instruments		17,574	18,847
Cash and cash equivalents		556,989	461,260
Restricted cash		88,717	83,190
Derivative assets		51,103	53,238
Margin receivable		16,503	4,758
FHLBC stock		10	5,000
Pledged collateral		0	1,177
Liabilities
Margin payable		48,298	0
Guarantee obligation		5,263	7,843
Derivative liabilities		10,972	16,072
ABS issued, net, Fair value		7,756,101	6,900,362
ABS issued, net, Amortized cost		428,059	204,892
Other long-term debt, net (5)		848,929	783,570
Convertible notes, net (5)		539,067	499,865
Trust preferred securities and subordinated notes, net (5)		94,163	80,910
Fair Value | Servicer Advance Investments
Assets
MSRs		170,062	231,489
Fair Value | MSRs
Assets
MSRs		12,389	8,815
Fair Value | Excess MSRs
Assets
REO		29,185	34,418
Fair Value | REO
Assets
REO		21,657	9,229
Fair Value | Short-term debt
Liabilities
Short-term debt		1,750,941	522,609
Fair Value | Residential Loans | Residential loans, at fair value
Assets
Loans, held-for-sale		1,495,044	176,604
Fair Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		4,721,389	4,072,410
Fair Value | Residential Loans | Business purpose residential loans, held-for-sale
Assets
Loans, held-for-sale		466,346	245,394
Fair Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		4,227,209	3,890,959
Fair Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		482,791	492,221
HEIs at Redwood | Carrying Value
Assets
Shared home appreciation options		167,856	42,440
Liabilities
Point HEI non-controlling interest		16,722	0
HEIs at Redwood | Fair Value
Assets
Shared home appreciation options		167,856	42,440
Liabilities
Point HEI non-controlling interest		$ 16,722	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 11	$ 37
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	3,170	9,750
Business purpose loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	637	1,550
Excess MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	5	9
HEIs at Redwood
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	122
Other Financial Instrument
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 11	$ 15

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		Sep. 30, 2021	Dec. 31, 2020
Assets
Real estate securities		$ 153,010	$ 125,667
MSRs		159,408	217,656
Other investments	[1]	422,366	348,175
Derivative assets	[1]	51,103	53,238
Pledged collateral		0	1,177
Liabilities
Derivative liabilities	[1]	10,972	16,072
ABS issued		7,756,101	6,900,362
Fair Value, Measurements, Recurring
Assets
Business purpose loans		4,693,555	4,136,353
Multifamily loans		482,791	492,221
Real estate securities		353,286	344,125
Servicer advance investments		170,062	231,489
MSRs		12,389	8,815
Excess MSRs		29,185	34,418
HEIs		167,856	42,440
Other investments		17,574	18,847
Derivative assets		51,103	53,238
Pledged collateral			1,177
FHLBC stock			5,000
Liabilities
Point HEI non-controlling interest		16,722
Derivative liabilities		10,972	16,072
ABS issued		7,756,101	6,900,362
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		6,216,433	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
HEIs		0	0
Other investments		0	0
Derivative assets		8,213	18,260
Pledged collateral			1,177
FHLBC stock			0
Liabilities
Point HEI non-controlling interest		0
Derivative liabilities		8,348	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
HEIs		0	0
Other investments		0	0
Derivative assets		33,628	19,951
Pledged collateral			0
FHLBC stock			5,000
Liabilities
Point HEI non-controlling interest		0
Derivative liabilities		74	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		4,693,555	4,136,353
Multifamily loans		482,791	492,221
Real estate securities		353,286	344,125
Servicer advance investments		170,062	231,489
MSRs		12,389	8,815
Excess MSRs		29,185	34,418
HEIs		167,856	42,440
Other investments		17,574	18,847
Derivative assets		9,262	15,027
Pledged collateral			0
FHLBC stock			0
Liabilities
Point HEI non-controlling interest		16,722
Derivative liabilities		2,550	577
ABS issued		7,756,101	6,900,362
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 6,216,433	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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	9 Months Ended
	Sep. 30, 2021USD ($)
Point Noncontrolling Interest
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	$ 0
Acquisitions	16,639
Principal paydowns	0
Gains (losses) in net income (loss), net	83
Other settlements, net	0
Ending balance - September 30, 2021	16,722
ABS Issued
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	6,900,362
Acquisitions	2,552,785
Principal paydowns	(1,500,357)
Gains (losses) in net income (loss), net	(196,689)
Other settlements, net	0
Ending balance - September 30, 2021	7,756,101
Residential Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	4,249,014
Acquisitions	9,926,335
Originations	0
Sales	(6,958,669)
Principal paydowns	(1,051,390)
Gains (losses) in net income (loss), net	53,549
Unrealized losses in OCI, net	0
Other settlements, net	(2,406)
Ending balance - September 30, 2021	6,216,433
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	38,176
Originations	1,515,262
Sales	(9,484)
Principal paydowns	(942,096)
Gains (losses) in net income (loss), net	(25,658)
Unrealized losses in OCI, net	0
Other settlements, net	(18,998)
Ending balance - September 30, 2021	4,693,555
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	(5,685)
Gains (losses) in net income (loss), net	(3,745)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - September 30, 2021	482,791
Trading Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	125,667
Acquisitions	37,117
Originations	0
Sales	(32,704)
Principal paydowns	(1,783)
Gains (losses) in net income (loss), net	24,713
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - September 30, 2021	153,010
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	(45,120)
Gains (losses) in net income (loss), net	26,998
Unrealized losses in OCI, net	3,125
Other settlements, net	0
Ending balance - September 30, 2021	200,276
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	(58,248)
Gains (losses) in net income (loss), net	(3,179)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - September 30, 2021	170,062
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	(5,233)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - September 30, 2021	29,185
HEIs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	42,440
Acquisitions	122,373
Originations	0
Sales	0
Principal paydowns	(10,220)
Gains (losses) in net income (loss), net	13,263
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - September 30, 2021	167,856
MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2020	27,662
Acquisitions	14,615
Originations	0
Sales	0
Principal paydowns	(9,224)
Gains (losses) in net income (loss), net	(2,974)
Unrealized losses in OCI, net	0
Other settlements, net	(116)
Ending balance - September 30, 2021	29,963
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	17,806
Other settlements, net	(25,544)
Ending balance - September 30, 2021	$ 6,712

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 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	$ (2,570)	$ 420	$ (2,550)	$ (1,334)
Point HEI Noncontrolling Interest
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	(83)	0	(83)	0
Point Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	47	0	129	0
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	6,553	(107)	9,371	(865)
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	2,885	7,700	11,779	(22,802)
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	13,781	82,209	54,006	(33,087)
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	18,810	21,155	19,829	17,901
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	555	2,165	11,330	(11,014)
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	2,943	9,673	5,500	(41,048)
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	1,547	(3,549)	3,824	(80,358)
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	(2,079)	25	(3,179)	(6,172)
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	(235)	(2,376)	(49)	(16,798)
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	(803)	(1,127)	(5,233)	(7,650)
HEIs 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	(41)	2,384	21	(4,286)
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	$ 9,021	$ 10,791	$ 9,261	$ 10,773

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	9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2021USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 622	$ 622
Gain (Loss) on assets measured at fair value on a non-recurring basis	(1)	(4)
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	$ 622	$ 622

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ 295	$ (2,362)	$ 949	$ (5,595)
Total Market Valuation Gains (Losses), Net	78,415	158,883	292,056	(606,764)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	53,327	56,619	174,648	18,173
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	9,045	(478)	57,145	(15,972)
Mortgage Banking Activities, Net | Residential loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	18,817	13,067	18,351	35,123
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	19,205	43,191	54,675	55,868
Mortgage Banking Activities, Net | Single-family rental loan 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	0	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	3,433	938	6,702	(4,256)
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	32	0	(342)	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	3,539	(99)	38,117	(52,931)
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	26,077	107,047	120,644	(611,557)
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	1,546	(3,600)	25,067	(224,679)
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	816	218	2,423	(93,314)
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	0	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	900	6,812	4,142	(10,016)
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	(2,079)	26	(3,179)	(6,172)
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	(803)	(1,127)	(5,233)	(7,650)
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	(247)	(81)	(1,162)	(702)
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	3,314	7,851	13,118	(22,065)
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	13,849	82,214	54,282	(33,081)
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	554	2,166	11,330	(82,744)
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	2,943	9,673	6,354	(41,048)
Investment Fair Value Changes, Net | Point Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	47	0	47	0
Investment Fair Value Changes, Net | HEIs at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	5,622	2,384	13,017	(4,286)
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	(385)	67	50	(4,825)
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	0	444	388	(1,027)
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	(989)	(4,783)	(3,236)	(13,380)
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	$ (989)	$ (4,783)	$ (3,236)	$ (27,346)

Fair Value of Financial Inst_10

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)$ / loan	Dec. 31, 2020USD ($)
Assets
ABS issued, net, Fair value | $	$ 7,756,101	$ 6,900,362
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Liabilities
Fair value of our investments | $	1,080,553	992,655
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | Point HEI
Liabilities
Fair value of our investments | $	10,348	$ 0
ABS Issued
Liabilities
ABS issued | $	$ 2,482,746
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	0.55
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	0.36
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
CAFL
Liabilities
ABS issued | $	$ 3,126,405
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	0.02
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
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,550,111
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 | $	$ 451,402
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	0.08
Freddie Mac K-Series | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.02
Consolidated Point Entities
Liabilities
ABS issued | $	$ 145,437
Consolidated Point Entities | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Discount rate | Minimum
Liabilities
ABS issued, measurement input	0.03
Consolidated Point Entities | Discount rate | Maximum
Liabilities
ABS issued, measurement input	0.15
Consolidated Point Entities | Discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.04
Consolidated Point Entities | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.06
Consolidated Point Entities | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.06
Consolidated Point Entities | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
Consolidated Point Entities | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.25
Consolidated Point Entities | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.25
Consolidated Point Entities | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.25
Consolidated Point Entities | Home price appreciation | Minimum
Liabilities
ABS issued, measurement input	0.03
Consolidated Point Entities | Home price appreciation | Maximum
Liabilities
ABS issued, measurement input	0.04
Consolidated Point Entities | Home price appreciation | Weighted Average
Liabilities
ABS issued, measurement input	0.03
Jumbo fixed-rate loans
Assets
ABS issued, net, Fair value | $	$ 624,477
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	3
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Maximum
Assets
Loans held-for-sale, measurement input	3
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans held-for-sale, measurement input	3
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0202
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0202
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0202
Jumbo loans committed to sell
Assets
Loans receivable, fair value | $	$ 870,568
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Loans held-for-sale, measurement input	101.90
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Loans held-for-sale, measurement input	103.32
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Loans held-for-sale, measurement input	102.46
Legacy Sequoia
Assets
Loans receivable, fair value | $	$ 242,234
Sequoia
Assets
Loans receivable, fair value | $	2,479,750
Liabilities
Fair value of securities owned | $	240,000
Freddie Mac SLST
Assets
Loans receivable, fair value | $	1,999,405
Liabilities
Fair value of securities owned | $	451,000
Single-family rental loans
Assets
Loans receivable, fair value | $	$ 466,346
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	0.0065
Single-family rental loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0065
Single-family rental loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0065
Single-family rental loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0110
Single-family rental loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.1523
Single-family rental loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0401
Single-family rental loans | Senior credit support | Minimum
Assets
Loans receivable, measurement input	0.35
Single-family rental loans | Senior credit support | Maximum
Assets
Loans receivable, measurement input	0.35
Single-family rental loans | Senior credit support | Weighted Average
Assets
Loans receivable, measurement input	0.35
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	76
Single-family rental loans | Non-securitizable loan dollar price | Maximum
Assets
Loans receivable, measurement input	111
Single-family rental loans | Non-securitizable loan dollar price | Weighted Average
Assets
Loans receivable, measurement input	101
CAFL
Assets
Loans receivable, fair value | $	$ 3,402,410
Liabilities
Fair value of securities owned | $	288,000
Bridge loans
Assets
Loans receivable, fair value | $	$ 824,799
Bridge loans | Discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.04
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	0.06
Freddie Mac K-Series
Assets
Loans receivable, fair value | $	$ 482,791
Liabilities
Fair value of securities owned | $	31,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 353,286
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	0.58
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities	0.27
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	0.38
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	0.24
Trading and AFS securities | Measurement Input, CRT Dollar Price | Minimum
Assets
Trading and AFS securities	96
Trading and AFS securities | Measurement Input, CRT Dollar Price | Maximum
Assets
Trading and AFS securities	116
Trading and AFS securities | Measurement Input, CRT Dollar Price | Weighted Average
Assets
Trading and AFS securities	104
Servicer Advance Investments
Assets
Servicing asset | $	$ 170,062
Servicer Advance Investments | Minimum
Assets
Expected remaining life	5 years
Servicer Advance Investments | Maximum
Assets
Expected remaining life	5 years
Servicer Advance Investments | Weighted Average
Assets
Expected remaining life	5 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	0.02
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	0.02
Servicer Advance Investments | Mortgage servicing income | Minimum
Assets
Servicing asset, measurement input	0.0002
Servicer Advance Investments | Mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0011
Servicer Advance Investments | Mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0009
MSRs
Assets
Servicing asset | $	$ 12,389
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.06
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.80
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.28
MSRs | Discount rate | Minimum
Assets
Servicing asset, measurement input	0.12
MSRs | Discount rate | Maximum
Assets
Servicing asset, measurement input	0.15
MSRs | Discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.13
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing asset, measurement input	95
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing asset, measurement input	95
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing asset, measurement input	95
Excess MSRs
Assets
Servicing asset | $	$ 29,185
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	0.25
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
HEIs at Redwood
Assets
HEIs | $	$ 414
HEIs at Redwood | Dollar Price | Minimum
Assets
Loans receivable, measurement input	92
HEIs at Redwood | Dollar Price | Maximum
Assets
Loans receivable, measurement input	124
HEIs at Redwood | Dollar Price | Weighted Average
Assets
Loans receivable, measurement input	105
HEIs held by Point HEI entity
Assets
HEIs | $	$ 167,442
REO
Assets
REO | $	$ 622
REO | Loss severity | Minimum
Assets
REO, measurement input	0.11
REO | Loss severity | Maximum
Assets
REO, measurement input	0.40
REO | Loss severity | Weighted Average
Assets
REO, measurement input	0.22
Residential loan purchase commitments, net
Assets
Loan purchase commitments, net | $	$ 6,712
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	3
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Maximum
Assets
Loans receivable, measurement input	3
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans receivable, measurement input	3
Residential loan purchase commitments, net | Whole loan spread to swap rate | Minimum
Assets
Loans receivable, measurement input	0.0185
Residential loan purchase commitments, net | Whole loan spread to swap rate | Maximum
Assets
Loans receivable, measurement input	0.0202
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 | Committed sales price | Minimum
Assets
Loans receivable, measurement input	102.11
Residential loan purchase commitments, net | Committed sales price | Maximum
Assets
Loans receivable, measurement input	102.77
Residential loan purchase commitments, net | Committed sales price | Weighted Average
Assets
Loans receivable, measurement input	102.54
Residential loan purchase commitments, net | Pull-through rate | Minimum
Assets
Loans receivable, measurement input	0.04
Residential loan purchase commitments, net | Pull-through rate | Maximum
Assets
Loans receivable, measurement input	1
Residential loan purchase commitments, net | Pull-through rate | Weighted Average
Assets
Loans receivable, measurement input	0.71

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Sep. 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]	$ 1,495,079	$ 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		242,234	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		2,479,750	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		1,999,405	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		6,216,468	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		242,234	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		2,479,750	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		1,999,405	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		1,495,079	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		4,721,389	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		242,234	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		2,479,750	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		1,999,405	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		1,495,079	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		1,495,079	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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details) $ in Millions	Sep. 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	$ 1,400

Residential Loans - Characteris

Residential Loans - Characteristics of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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	1,958	198
Unpaid principal balance	$ 1,464,767	$ 172,748
Fair value of loans	1,495,079	176,641
Market value of loans pledged as collateral under short-term borrowing agreements	$ 1,478,424	$ 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	$ 3,159	$ 1,882
Number of loans with 90+ day delinquencies | loan	4	1
Fair value of loans with 90+ day delinquencies	$ 2,490	$ 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 3,167,186	$ 172,162	$ 9,747,867	$ 2,859,813
Principal balance of loans sold	2,360,862	87,868	6,787,490	4,750,615
Principal balance of loans transferred to HFI	448,878	0	1,623,000	274,048
Net market valuation gains (losses) recorded	$ 9,861	$ (478)	$ 59,568	$ (15,972)

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
	Sep. 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	1,653	1,908
Unpaid principal balance	$ 278,815	$ 333,474
Fair value of loans	$ 242,234	$ 285,935
Number of loans in foreclosure | loan	18	21
Unpaid principal balance of loans in foreclosure	$ 4,416	$ 4,939
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	3,022	2,177
Unpaid principal balance	$ 2,447,402	$ 1,550,454
Fair value of loans	$ 2,479,750	$ 1,565,322
Number of loans in foreclosure | loan	4	3
Unpaid principal balance of loans in foreclosure	$ 2,863	$ 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	12,444	13,605
Unpaid principal balance	$ 2,022,724	$ 2,247,771
Fair value of loans	$ 1,999,405	$ 2,221,153
Number of loans in foreclosure | loan	305	245
Unpaid principal balance of loans in foreclosure	$ 52,319	$ 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	40	52
Fair value of loans with 90+ day delinquencies	$ 14,038	$ 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	30	94
Fair value of loans with 90+ day delinquencies	$ 24,438	$ 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	1,168	2,110
Fair value of loans with 90+ day delinquencies	$ 209,913	$ 389,245

Residential Loans - Quarterly_2

Residential Loans - Quarterly Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 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			$ 3,005,041	$ 770,754
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)	$ (11,663)	$ (5,175)	(27,076)	(21,727)
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)	(13,836)	159,687	5,177	15,254
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)	(2,580)	21,938	9,896	(38,996)
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	464,189	0	1,669,683	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	$ 218	$ 0	$ (93,314)

Business Purpose Loans - Classi

Business Purpose Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	Sep. 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	548,445	641,765
Residential bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	548,445	641,765
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	466,346	245,394
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,227,209	3,890,959
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,693,555	4,136,353
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	466,346	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	466,346	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	3,402,410	3,249,194
CoreVest | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	3,402,410	3,249,194
CoreVest | Bridge Loans, Held-For-Sale At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CoreVest | Bridge Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	276,354	0
CoreVest | Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 276,354	$ 0

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)	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			$ 9,902,028	$ 2,893,246
Principal balance of loans sold to third parties			46,904	19,446
Transfers from loans held-for-sale to loans held-for-investment			3,005,041	770,754
Transfers from loans held-for-investment to loans held-for-sale			$ 44,922	0
Adjustable rate (as a percent)			69.00%
Fixed rate (as a percent)			31.00%
Transfers from residential loans to real estate owned			$ 21,655	12,547
Amount related to transfers into REO			$ 21,654
CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans transferred | loan			3
Amount related to transfers into REO			$ 11,924
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	$ 426,000		426,000
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	392,620	$ 195,744	957,935	631,749
Principal balance of loans acquired	2,463	0	2,463	0
Principal balance of loans sold to third parties	0	7,695	0	33,843
Transfers from loans held-for-sale to loans held-for-investment	332,670	326,405	799,375	925,437
Transfers from loans held-for-investment to loans held-for-sale	0	0	44,922	0
Gain (loss) on investments	0	0	0	(20,806)
Fair value of loans	466,346		466,346		$ 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	19,205	43,191	54,675	54,731
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	$ (34,803)	88,271	(96,934)	(14,319)
Number of loans | loan	1,157				1,094
Unpaid principal balance	$ 3,207,118		3,207,118		$ 3,017,137
Fair value of loans	$ 3,402,411		$ 3,402,411		$ 3,249,194
Weighted average coupon rate	5.27%		5.27%		5.44%
Contract maturities	6 years				5 years
Fair value of loans with 90+ day delinquencies	$ 22,004		$ 22,004		$ 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	15		15		22
Fair value of loans with 90+ day delinquencies	$ 39,423		$ 39,423		$ 61,440
Bridge 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	0	0	0	0
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	208,938	65,517	557,327	351,353
Principal balance of loans acquired	35,713	0	35,713	0
Principal balance of loans sold to third parties	253	1,567	9,484	23,860
Gain (loss) on investments	900	6,812	4,142	(10,016)
Fair value of loans	548,445		548,445		641,765
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	3,691	29	5,212	(3,412)
Bridge loans held-for-investment | 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	276,354		276,354
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income	9,000	$ 3,000	22,000	$ 13,000
Fair value of loans	$ 4,693,555		4,693,555		$ 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	123				65
Unpaid principal balance	$ 451,295		451,295		$ 234,475
Fair value of loans	$ 466,346		$ 466,346		$ 245,394
Weighted average coupon rate	4.57%		4.57%		4.84%
Contract maturities	7 years				8 years
Fair value of loans with 90+ day delinquencies	$ 4,978		$ 4,978		$ 0
Number of loans in foreclosure | loan	6		6		0
Unpaid principal balance of loans in foreclosure	$ 2,619		$ 2,619		$ 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	127,930				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	298,014				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	$ 2,664		$ 2,664		$ 6,143
Number of loans with 90+ day delinquencies | loan	7		7		10
Fair value of loans with 90+ day delinquencies	$ 5,067		$ 5,067		$ 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	1,092				1,725
Unpaid principal balance	$ 550,711		550,711		$ 649,532
Fair value of loans	$ 548,445		$ 548,445		$ 641,765
Weighted average coupon rate	7.48%		7.48%		8.09%
Contract maturities	1 year				1 year
Fair value of loans with 90+ day delinquencies	$ 26,177		$ 26,177		$ 38,552
Number of loans in foreclosure | loan	34		34		25
Unpaid principal balance of loans in foreclosure	$ 22,570		$ 22,570		$ 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	126,725				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	373,597				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	$ 26,525		$ 26,525		$ 33,605
Number of loans with 90+ day delinquencies | loan	35		35		31
Fair value of loans with 90+ day delinquencies	$ 30,132		$ 30,132		$ 39,415
Business Purpose Bridge Loans | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,589				0
Unpaid principal balance	$ 272,243		272,243		$ 0
Fair value of loans	$ 276,354		$ 276,354		$ 0
Weighted average coupon rate	7.19%		7.19%		0.00%
Contract maturities	1 year
Fair value of loans with 90+ day delinquencies	$ 0		$ 0		$ 0
Number of loans in foreclosure | loan	0		0		0
Unpaid principal balance of loans in foreclosure	$ 0		$ 0		$ 0
Business Purpose Bridge Loans | 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]
Fair value of loans	$ 0		$ 0		$ 0
Number of loans with 90+ day delinquencies | loan	0		0		0
Fair value of loans with 90+ day delinquencies	$ 0		$ 0		$ 0

Multifamily Loans (Details)

Multifamily Loans (Details) - Multifamily loans, held-for-investment, at fair value $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)	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 | $	$ 457,123		$ 457,123		$ 462,808
Fair value of loans | $	$ 482,791		$ 482,791		$ 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) | $	$ (487)	$ 2,340	$ (3,745)	$ (61,500)

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Trading		$ 153,010	$ 125,667
Available-for-sale		200,276	218,458
Total Real Estate Securities	[1]	$ 353,286	$ 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Investment Holdings [Line Items]
Real estate securities	$ 153,010		$ 153,010		$ 125,667
Unpaid principal balance	216,771		216,771		245,855
Principal balance of securities acquired	10,750	$ 11,000	28,380	$ 77,721
Principal balance of securities sold	750	15,903	53,561	720,517
Net market valuation gains (losses) recorded	1,578	$ (3,600)	24,725	$ (224,679)
Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	22,494		22,494		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	130,516		130,516		93,554
Unpaid principal balance	216,771		216,771		242,278
Interest Only Senior Trading Securities | Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	22,494		22,494		28,464
Interest Only Senior Trading Securities | Senior IO Securities | Sequoia
Investment Holdings [Line Items]
Real estate securities	15,000		15,000		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	64,845		64,845		47,448
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Real estate securities	11,298		11,298		5,592
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities	$ 54,373		$ 54,373		$ 40,514

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Investment Holdings [Line Items]
Available-for-sale	$ 200,276		$ 200,276		$ 218,458
Fair value of securities acquired	0	$ 25,483	1,600	$ 56,664
Fair value of securities sold	0	$ 0	4,785	$ 55,193
Mezzanine
Investment Holdings [Line Items]
Available-for-sale	0		0		2,014
Subordinate
Investment Holdings [Line Items]
Available-for-sale	200,276		200,276		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	40,082		40,082		36,306
Sequoia securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale	128,874		128,874		136,475
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Available-for-sale	$ 31,320		$ 31,320		$ 43,663

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)investmententity	Sep. 30, 2021USD ($)entityinvestment	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)investment
Investment Holdings [Line Items]
Number of AFS securities (in investments) | investment	84	84		96
Number of securities in unrealized loss position | investment	1	1		5
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | investment				0
Gross unrealized losses	$ 33	$ 33		$ 1,047
CECL credit allowance	$ 0	$ 0	$ 0	388
Variable Interest Entity, Not Primary Beneficiary
Investment Holdings [Line Items]
Number of entities called | entity	2	6
Unpaid principal balance of loans purchased	$ 66,000	$ 167,000
Gain related to called security	6,000	15,000
Residential
Investment Holdings [Line Items]
AFS securities, contractual maturities, less than five years	28,000	28,000
Marketable securities, due from five to ten years	4,000	4,000
CECL credit allowance	$ 29,448	$ 29,448	$ 40,349	$ 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	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Principal balance	$ 238,459		$ 283,284
Credit reserve	(29,448)		(44,967)
Unamortized discount, net	(88,108)		(95,718)
Amortized cost	120,903		142,599
Gross unrealized gains	79,406		77,294
Gross unrealized losses	(33)		(1,047)
CECL allowance	0	$ 0	(388)
Carrying Value	200,276		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	238,459		281,284
Credit reserve	(29,448)		(44,967)
Unamortized discount, net	(88,108)		(95,718)
Amortized cost	120,903		140,599
Gross unrealized gains	79,406		77,280
Gross unrealized losses	(33)		(1,047)
CECL allowance	0		(388)
Carrying Value	$ 200,276		$ 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	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Credit Reserve
Beginning balance	$ 0	$ 388
Sales, calls, other	0	0
Ending Balance	0	0
Unamortized Discount, Net
Beginning balance		95,718
Ending Balance	88,108	88,108
Residential
Credit Reserve
Beginning balance	40,349	44,967
Amortization of net discount	0	0
Realized credit losses	(184)	(433)
Acquisitions	0	2,825
Sales, calls, other	(320)	(1,312)
Transfers to (release of) credit reserves, net	(10,397)	(16,599)
Ending Balance	29,448	29,448
Unamortized Discount, Net
Beginning balance	90,216	95,718
Amortization of net discount	(6,437)	(9,620)
Realized credit losses	0	0
Acquisitions	0	1,208
Sales, calls, other	(6,068)	(15,797)
Transfers to (release of) credit reserves, net	10,397	16,599
Ending Balance	$ 88,108	$ 88,108

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	Sep. 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	1,600	0
12 Consecutive Months or Longer, Unrealized Losses	(33)	0
12 Consecutive Months or Longer, Fair Value	$ 1,567	$ 0

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	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Rollforward of Allowance for Credit Losses
Beginning balance	$ 0	$ 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	0	(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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 6,389	$ 0	$ 16,991	$ 4,635
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	0	0	1,507	8,779
Gross realized losses - sales	0	0	0	(4,144)
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 6,389	$ 0	$ 15,484	$ 0

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Net Investment Income [Line Items]
Servicing asset, fair value		$ 159,408	$ 217,656
Other Investments	[1]	422,366	348,175
Residential Loans
Net Investment Income [Line Items]
Servicing asset, fair value		170,062	231,489
HEIs
Net Investment Income [Line Items]
Servicing asset, fair value		167,856	42,440
Strategic Investments
Net Investment Income [Line Items]
Servicing asset, fair value		31,108	4,449
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value		29,185	34,418
Mortgage servicing rights
Net Investment Income [Line Items]
Servicing asset, fair value		12,389	8,815
Other
Net Investment Income [Line Items]
Loans held for investment		$ 11,766	$ 26,564
[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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)partnership	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership			2
Commitment to fund partnership			$ 94,000
Servicing asset, fair value	$ 159,408		159,408		$ 217,656
Collateral amounts	1,175,479		1,175,479		1,084,929
Investment fair value changes, net	26,077	$ 107,047	120,644	$ (611,557)
Interest income	145,722	121,982	$ 412,722	450,009
Variable Interest Entity, Primary Beneficiary
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership			2
Investment fair value changes, net	18,380	101,420	$ 78,323	(189,448)
Interest income	96,090	89,912	289,878	303,264
Variable Interest Entity, Primary Beneficiary | Point HEI
Net Investment Income [Line Items]
Investment fair value changes, net	47	0	47	0
Interest income	0	0	0	0
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Net Investment Income [Line Items]
Fair value of our investments	1,080,553		1,080,553		992,655
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | Point HEI
Net Investment Income [Line Items]
Fair value of our investments	10,348		10,348		0
Servicer advance financing
Net Investment Income [Line Items]
Collateral amounts	159,000		159,000
Equity investment income	2,000		7,000
Investment fair value changes, net	(2,000)		(3,000)	(6,000)
Servicer advance financing | Maximum
Net Investment Income [Line Items]
Investment fair value changes, net		100
Servicer advance financing | Other Interest Income
Net Investment Income [Line Items]
Investment fair value changes, net		3,000		8,000
Held-for-sale residential loans
Net Investment Income [Line Items]
Servicing asset, fair value	170,062		170,062		231,489
Servicing asset, unpaid principal balance on underlying loan	7,530,000		7,530,000
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	29,185		29,185		34,418
Investment fair value changes, net	(1,000)	(1,000)	(5,000)	(8,000)
Fair value option elected aggregate carrying amount, asset	5,000		9,000
Interest income	3,000	3,000	9,000	9,000
Shared home appreciation options
Net Investment Income [Line Items]
Fair value option elected aggregate carrying amount, asset	122,000
Other investments held by noncontrolling interests	17,000		17,000
MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	12,389		12,389		8,815
Aggregate principal balance	2,290,000		2,290,000		$ 2,590,000
MSR income (losses), net	300	(2,000)	1,000	(6,000)
Shared home appreciation options
Net Investment Income [Line Items]
Payments to acquire investments	47,000
Transfer to investments	170,000
Shared home appreciation options | Commitment To Fund Investment
Net Investment Income [Line Items]
Investment fair value changes, net	6,000	$ 2,000	$ 13,000	$ (4,000)
HEIs
Net Investment Income [Line Items]
Investment fair value changes, net	$ 100

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule of Investments [Line Items]
Total Servicer Advance Receivables	$ 159,408	$ 217,656
Servicer advance financing
Schedule of Investments [Line Items]
Principal and interest advances	77,116	110,923
Escrow advances (taxes and insurance advances)	62,117	79,279
Corporate advances	$ 20,175	$ 27,454

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Fair Value	$ 40,131,000	$ 37,166,000
Notional Amount	8,968,793,000	11,346,407,000
TBAs
Derivative [Line Items]
Notional Amount	4,400,000,000	6,630,000,000
Interest rate futures
Derivative [Line Items]
Notional Amount	133,000,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(10,972,000)	(16,072,000)
Notional Amount	3,448,279,000	3,582,153,000
Derivative Liabilities | Interest rate swaps
Derivative [Line Items]
Fair Value	(74,000)	0
Notional Amount	40,500,000	0
Derivative Liabilities | TBAs
Derivative [Line Items]
Fair Value	(7,599,000)	(15,495,000)
Notional Amount	2,190,000,000	3,105,000,000
Derivative Liabilities | Interest rate futures
Derivative [Line Items]
Fair Value	(749,000)	0
Notional Amount	133,200,000	0
Derivative Liabilities | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	(2,550,000)	(577,000)
Notional Amount	1,084,579,000	477,153,000
Derivative Assets
Derivative [Line Items]
Fair Value	51,103,000	53,238,000
Notional Amount	5,520,514,000	7,764,254,000
Derivative Assets | Interest rate swaps
Derivative [Line Items]
Fair Value	3,213,000	224,000
Notional Amount	293,200,000	42,000,000
Derivative Assets | TBAs
Derivative [Line Items]
Fair Value	8,213,000	18,260,000
Notional Amount	2,205,000,000	3,520,000,000
Derivative Assets | Swaptions
Derivative [Line Items]
Fair Value	30,415,000	19,727,000
Notional Amount	1,335,000,000	1,585,000,000
Derivative Assets | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	9,262,000	15,027,000
Notional Amount	$ 1,687,314,000	$ 2,617,254,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional amount	$ 8,968,793,000			$ 8,968,793,000			$ 11,346,407,000
Accumulated other comprehensive income (loss)	1,375,823,000	$ 1,053,464,000		1,375,823,000	$ 1,053,464,000	$ 1,295,142,000	1,110,899,000	$ 936,576,000	$ 1,827,231,000
Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(77,470,000)	(81,597,000)		(77,470,000)	(81,597,000)	$ (78,511,000)	(80,557,000)	$ (82,637,000)	$ (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	53,327,000	56,619,000		174,648,000	18,173,000
Loan purchase commitments and forward sales commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	18,000,000	13,000,000		18,000,000	35,000,000
Interest rate contract
Derivative [Line Items]
Notional amount	1,670,000,000			1,670,000,000			1,630,000,000
TBAs
Derivative [Line Items]
Notional amount	4,400,000,000			4,400,000,000			$ 6,630,000,000
Interest rate futures
Derivative [Line Items]
Notional amount	133,000,000			133,000,000
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Derivative gain (loss)	4,000,000	0		38,000,000	(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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative [Line Items]
Total interest expense	$ (103,754)	$ (100,411)	$ (314,371)	$ (349,748)
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	(1,041)	(1,040)	(3,086)	(2,148)
Total interest expense	$ (1,041)	$ (1,040)	$ (3,086)	$ (3,008)

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest receivable		$ 41,997	$ 39,445
Investment receivable		32,420	43,176
Deferred tax asset		20,153	871
REO		18,863	8,413
Margin receivable		16,503	4,758
Operating lease right-of-use assets		13,659	15,012
Fixed assets and leasehold improvements		9,344	4,203
Pledged collateral		0	1,177
Other		9,254	13,533
Total Other Assets	[1]	162,193	$ 130,588
Fixed assets		17,000
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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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		Sep. 30, 2021	Dec. 31, 2020
Other Assets and Other Liabilities [Line Items]
Accrued compensation		$ 64,354	$ 24,393
Margin payable		48,298	14,728
Accrued interest payable		34,545	34,858
Payable to non-controlling interests (1)		31,781	16,941
Operating lease liabilities		15,771	16,687
Accrued income taxes payable		11,336	5,614
Residential loan and MSR repurchase reserve		9,003	8,631
Guarantee obligations		7,902	10,039
Accrued operating expenses		4,068	5,509
Bridge loan holdbacks		3,784	5,708
Deferred consideration		0	14,579
Other		20,734	21,653
Total Accrued Expenses and Other Liabilities	[1]	251,576	179,340
Servicing Investment
Other Assets and Other Liabilities [Line Items]
Payable to non-controlling interests (1)		11,000	$ 17,000
Point Entities
Other Assets and Other Liabilities [Line Items]
Payable to non-controlling interests (1)		$ 17,000
[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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - REO Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021USD ($)shares	Sep. 30, 2021USD ($)asset	Dec. 31, 2020asset
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 8,413	$ 8,413
Amount related to transfers into REO		21,654
Liquidations		(11,539)
Unrealized gain (loss) resulting from market valuation adjustments on REO		335
Balance at End of Period		18,863
Realized loss from liquidation		$ 300
Number of REO properties recorded on balance sheet | asset		29	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		(607)
Unrealized gain (loss) resulting from market valuation adjustments on REO		178
Balance at End of Period		$ 274
Number of REO properties recorded on balance sheet | asset		2	3
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	646	$ 646
Amount related to transfers into REO		2,591
Liquidations		(1,555)
Unrealized gain (loss) resulting from market valuation adjustments on REO		276
Balance at End of Period		$ 1,958
Number of REO properties recorded on balance sheet | asset		20	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		(1,990)
Unrealized gain (loss) resulting from market valuation adjustments on REO		(655)
Balance at End of Period		$ 11,808
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		7,074
Liquidations		(7,387)
Unrealized gain (loss) resulting from market valuation adjustments on REO		536
Balance at End of Period		$ 4,823
Number of REO properties recorded on balance sheet | asset		5	3

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		9 Months Ended	12 Months Ended
		Sep. 30, 2021USD ($)facility	Dec. 31, 2020USD ($)facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 1,750,941,000	$ 522,609,000
Facilities
Short-term Debt [Line Items]
Number of Facilities | facility		12	9
Outstanding Balance		$ 1,599,030,000	$ 314,234,000
Facilities | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		7	4
Outstanding Balance		$ 1,335,464,000	$ 137,269,000
Limit		$ 2,700,000,000	$ 1,300,000,000
Weighted Average Interest Rate (1)		1.89%	2.45%
Weighted Average Days Until Maturity		156 days	268 days
Facilities | Business purpose residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		2	2
Outstanding Balance		$ 183,800,000	$ 99,190,000
Limit		$ 350,000,000	$ 500,000,000
Weighted Average Interest Rate (1)		3.39%	3.37%
Weighted Average Days Until Maturity		201 days	521 days
Facilities | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		3	3
Outstanding Balance		$ 79,766,000	$ 77,775,000
Limit		$ 0	$ 0
Weighted Average Interest Rate (1)		1.23%	2.24%
Weighted Average Days Until Maturity		34 days	36 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 151,911,000	$ 208,375,000
Limit		$ 260,000,000	$ 335,000,000
Weighted Average Interest Rate (1)		1.89%	1.95%
Weighted Average Days Until Maturity		61 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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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	Sep. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Total collateral for financing	$ 2,034,873	$ 649,106
Facilities
Short-term Debt [Line Items]
Total real estate securities owned	107,830	114,553
Other assets	1,709	315
Total collateral for financing	1,842,618	398,252
Servicer advance financing
Short-term Debt [Line Items]
Total collateral for financing	192,255	250,854
Cash	12,975	9,978
Restricted cash	19,872	23,220
Servicer advances	159,408	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	1,478,424	156,355
Business purpose loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	254,655	127,029
On balance sheet | Facilities
Short-term Debt [Line Items]
Available-for-sale securities pledged as collateral	14,367	23,193
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	62,075	63,105
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 31,388	$ 28,255

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,980,000,000	$ 1,610,000,000
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	$ 100,000	$ 100,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Short-term debt	[1]	$ 1,750,941	$ 522,609
Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,800
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		466,540
Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,240,601
Facilities
Short-term Debt [Line Items]
Short-term debt		1,599,030	314,234
Facilities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,800
Facilities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		314,629
Facilities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,240,601
Facilities | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		1,335,464	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		278,663
Facilities | Held-for-sale residential loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,056,801
Facilities | Business purpose loans
Short-term Debt [Line Items]
Short-term debt		183,800
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		183,800
Facilities | Real estate securities
Short-term Debt [Line Items]
Short-term debt		79,766
Facilities | Real estate securities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,800
Facilities | Real estate securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		35,966
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		151,911	$ 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		151,911
Servicer advance financing | Over 90 days
Short-term Debt [Line Items]
Short-term debt		$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, 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)	Sep. 30, 2021USD ($)series	Dec. 31, 2020USD ($)series
Debt Instrument [Line Items]
Certificates	$ 1,510,056,000
Net Carrying Value	1,499,577,000
Asset-backed securities issued
Debt Instrument [Line Items]
Net Carrying Value	8,183,825,000	$ 7,100,661,000
Asset-backed securities issued | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	136,848,000	257,778,000
Asset-backed securities issued | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	7,804,617,000	6,637,905,000
Asset-backed securities issued | Interest-only certificates
Debt Instrument [Line Items]
Certificates	242,360,000	204,978,000
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Net Carrying Value	$ 239,447,000	$ 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	$ (35,249,000)	$ (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	1.45%	1.55%
Asset-backed securities issued | Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 273,957,000	$ 329,039,000
Asset-backed securities issued | Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Certificates	739,000	1,092,000
Asset-backed securities issued | Sequoia
Debt Instrument [Line Items]
Net Carrying Value	$ 2,243,299,000	$ 1,347,357,000
Number of series | series	13	10
Asset-backed securities issued | Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 22,808,000	$ 32,809,000
Asset-backed securities issued | Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.34%	2.25%
Asset-backed securities issued | Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.07%	5.04%
Asset-backed securities issued | Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 2,199,488,000	$ 1,309,957,000
Asset-backed securities issued | Sequoia | Interest-only certificates
Debt Instrument [Line Items]
Certificates	21,003,000	4,591,000
Asset-backed securities issued | CAFL
Debt Instrument [Line Items]
Net Carrying Value	$ 3,393,576,000	$ 3,013,093,000
Number of series | series	16	14
Asset-backed securities issued | CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 68,684,000	$ 133,734,000
Asset-backed securities issued | CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.34%	2.68%
Asset-backed securities issued | CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.21%	5.42%
Asset-backed securities issued | CAFL | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	$ 3,134,946,000	$ 2,716,425,000
Asset-backed securities issued | CAFL | Interest-only certificates
Debt Instrument [Line Items]
Certificates	189,946,000	162,934,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Net Carrying Value	$ 1,710,664,000	$ 1,993,919,000
Number of series | series	3	3
Debt instrument, face amount	$ 163,000,000	$ 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	$ 60,625,000	$ 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	$ 1,630,252,000	$ 1,866,145,000
Asset-backed securities issued | Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
Certificates	19,787,000	23,335,000
Asset-backed securities issued | Freddie Mac K-Series
Debt Instrument [Line Items]
Net Carrying Value	$ 451,402,000	$ 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	$ 19,863,000	$ 34,601,000
Asset-backed securities issued | Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	420,654,000	416,339,000
Asset-backed securities issued | Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
Certificates	10,885,000	13,026,000
Asset-backed securities issued | Point HEI
Debt Instrument [Line Items]
Net Carrying Value	$ 145,437,000	$ 0
Range of weighted average interest rates, by series	3.27%	0.00%
Number of series | series	1	0
Asset-backed securities issued | Point HEI | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
Net Carrying Value	$ 117,000	$ 0
Asset-backed securities issued | Point HEI | Certificates with principal balance
Debt Instrument [Line Items]
Certificates	145,320,000	0
Asset-backed securities issued | Point HEI | Interest-only certificates
Debt Instrument [Line Items]
Certificates	0	$ 0
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount	$ 270,000,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Dec. 31, 2052	Mar. 31, 2029	Jul. 31, 2023	Dec. 31, 2020
Debt Instrument [Line Items]
VIE, ownership interest rate (as a percent)		80.00%
Variable Interest Entity, Primary Beneficiary | Point HEI
Debt Instrument [Line Items]
ABS issued, net, Amortized cost		$ 146,000,000
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST
Debt Instrument [Line Items]
ABS issued, net, Amortized cost	$ 210,000,000
Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, Amortized cost		270,000,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount		163,000,000				$ 205,000,000
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		270,000,000
Total funding capacity		300,000,000
Bridge Loan		276,000,000
Restricted Cash		28,000,000
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
VIE, ownership interest rate (as a percent)	100.00%
Debt instrument, face amount		161,000,000
Unamortized debt discount		$ 3,000,000
Debt Instrument interest rate		4.75%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt Instrument interest rate			2.00%	2.00%	7.75%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		$ 267,000,000
Unamortized debt discount		$ 3,000,000
Debt Instrument interest rate		2.34%
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	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 22,905	$ 21,793
Legacy Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	107	141
Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	5,918	4,697
CAFL
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	10,760	10,122
Freddie Mac SLST
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	4,925	5,656
Freddie Mac K-Series
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 1,195	$ 1,177

Long-Term Debt - Schedule of Co

Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Debt Instrument [Line Items]
Borrowings	$ 1,510,056,000
Unamortized Deferred Issuance Costs / Discount	(10,479,000)
Net Carrying Value	1,499,577,000
Facilities
Debt Instrument [Line Items]
Borrowings	849,635,000
Unamortized Deferred Issuance Costs / Discount	(1,746,000)
Net Carrying Value	847,889,000
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Borrowings	139,500,000
Unamortized Deferred Issuance Costs / Discount	(791,000)
Net Carrying Value	$ 138,709,000
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		$ 242,000,000
Sequoia | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 147,182,000
Unamortized Deferred Issuance Costs / Discount	(417,000)
Net Carrying Value	$ 146,765,000
Weighted Average Interest Rate (as a percent)	4.21%
Facility A | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 102,370,000
Unamortized Deferred Issuance Costs / Discount	(429,000)
Net Carrying Value	$ 101,941,000
Weighted Average Interest Rate (as a percent)	4.21%
Facility B | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 95,011,000
Unamortized Deferred Issuance Costs / Discount	(439,000)
Net Carrying Value	$ 94,572,000
Weighted Average Interest Rate (as a percent)	4.75%
Non-Recourse BPL Financing, Facility D | Facilities
Debt Instrument [Line Items]
Borrowings	$ 105,961,000
Unamortized Deferred Issuance Costs / Discount	(320,000)
Net Carrying Value	105,641,000
Limit	$ 250,000,000
Non-Recourse BPL Financing, Facility D | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Recourse BPL Financing, Facility E | Facilities
Debt Instrument [Line Items]
Borrowings	$ 168,228,000
Unamortized Deferred Issuance Costs / Discount	0
Net Carrying Value	168,228,000
Limit	$ 450,000,000
Recourse BPL Financing, Facility E | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.10%
Recourse BPL Financing, Facility F | Facilities
Debt Instrument [Line Items]
Borrowings	$ 230,883,000
Unamortized Deferred Issuance Costs / Discount	(141,000)
Net Carrying Value	230,742,000
Limit	$ 250,000,000
Recourse BPL Financing, Facility F | 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	$ 198,629,000
Unamortized Deferred Issuance Costs / Discount	(2,098,000)
Net Carrying Value	$ 196,531,000
Weighted Average Interest Rate (as a percent)	4.75%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200,000
Unamortized Deferred Issuance Costs / Discount	(2,262,000)
Net Carrying Value	$ 147,938,000
Weighted Average Interest Rate (as a percent)	5.625%
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 172,092,000
Unamortized Deferred Issuance Costs / Discount	(3,582,000)
Net Carrying Value	$ 168,510,000
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	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Collateral amounts	$ 1,175,479	$ 1,084,929
Bridge Loan
Debt Instrument [Line Items]
Collateral amounts	373,597	544,151
Residential Real Estate
Debt Instrument [Line Items]
Collateral amounts	298,014	154,774
Commercial Real Estate
Debt Instrument [Line Items]
Collateral amounts	503,868	363,490
Commercial Real Estate | Sequoia | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	246,892	249,446
Commercial Real Estate | Facility A | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	256,976	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	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Accrued interest payable	$ 9,410	$ 12,402
Facilities
Debt Instrument [Line Items]
Accrued interest payable	900	1,799
Convertible notes | 4.75% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	1,206	3,564
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	1,784	3,896
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Accrued interest payable	4,948	2,474
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Accrued interest payable	$ 572	$ 669

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2021USD ($)lease	Sep. 30, 2020USD ($)	Mar. 31, 2019partnership	Sep. 30, 2021USD ($)loanrepurchase_requestlease	Sep. 30, 2020USD ($)loanrepurchase_request	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		$ 18,399			$ 18,399
Operating lease expense					3,000	$ 3,000
Increase in operating lease liability					1,000
Increase in operating lease, right of use asset					1,000
Operating lease liabilities		$ 15,771			$ 15,771		$ 16,687
Operating lease liability, statement of financial position [Extensible List]		Accounts Payable and Accrued Liabilities			Accounts Payable and Accrued Liabilities
Operating lease right-of-use assets		$ 13,659			$ 13,659		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 (as a percent)		4.90%			4.90%
Derivative liabilities	[1]	$ 10,972			$ 10,972		16,072
Net market valuation gains (losses)		(300)	$ 1,000		1,000	(1,000)
Number of partnerships, committed to fund | partnership				2
Other income related to risk sharing agreement		575	1,200		2,318	$ 3,146
Market valuation losses related to these investments					(100)
Guarantee obligations		7,902			7,902		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		9,003			$ 9,003		8,631
Number of residential repurchase requests (in repurchase requests) | repurchase_request					3	8
Number of loans repurchased | loan					1	0
Residential loans repurchase provision (reversal)					$ 600	$ (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
Maximum
Loss Contingencies [Line Items]
Loss from arrangements					100
Market valuation losses related to these investments		100
Residential Loans
Loss Contingencies [Line Items]
Loan principal		1,464,767			1,464,767		172,748
Fair value of loans		1,495,079			1,495,079		176,641
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans
Loss Contingencies [Line Items]
Fair value of loans		3,159			3,159		$ 1,882
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement		1,000	1,000		2,000	3,000
Mortgage banking and investment activities
Loss Contingencies [Line Items]
Market valuation losses related to these investments			$ (300)			$ (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		$ 618,000			$ 618,000
Weighted average original FICO score		756			756
Weighted average original loan-to-value (LTV)		74.00%			74.00%
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		21,000			21,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Commitments to fund temporary advances		426,000			426,000
Derivative liabilities		(1,000)			(1,000)
Commitments To Fund Point Options
Loss Contingencies [Line Items]
Commitments to fund temporary advances		$ 125,000			$ 125,000
[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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
2021 (3 months)	$ 928
2022	3,714
2023	3,235
2024	2,411
2025	1,983
2026 and thereafter	6,128
Total Lease Commitments	18,399
Less: Imputed interest	(2,628)
Operating lease liabilities	$ 15,771	$ 16,687

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,295,142	$ 936,576	$ 1,110,899	$ 1,827,231
Total other comprehensive (loss) income	(7,817)	8,831	6,144	(62,073)
Balance at End of Period	1,375,823	1,053,464	1,375,823	1,053,464
Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	88,251	53,246	76,336	92,452
Other comprehensive (loss) income before reclassifications	(2,658)	8,236	19,552	(19,890)
Amounts reclassified from other accumulated comprehensive income (loss)	(6,200)	(445)	(16,495)	(11,525)
Total other comprehensive (loss) income	(8,858)	7,791	3,057	(31,415)
Balance at End of Period	79,393	61,037	79,393	61,037
Interest Rate Agreements Accounted for as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(78,511)	(82,637)	(80,557)	(50,939)
Other comprehensive (loss) income before reclassifications	0	0	0	(32,806)
Amounts reclassified from other accumulated comprehensive income (loss)	1,041	1,040	3,087	2,148
Total other comprehensive (loss) income	1,041	1,040	3,087	(30,658)
Balance at End of Period	$ (77,470)	$ (81,597)	$ (77,470)	$ (81,597)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ 26,077	$ 107,047	$ 120,644	$ (611,557)
Realized gains, net	(6,703)	(602)	(17,803)	(30,419)
Interest expense	103,754	100,411	314,371	349,748
Net income before provision for income taxes	83,963	150,925	289,475	(649,221)
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	0	(445)	(388)	1,026
Realized gains, net	(6,200)	0	(16,107)	(12,552)
Net income before provision for income taxes	(6,200)	(445)	(16,495)	(11,526)
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	1,041	1,040	3,087	2,148
Net income before provision for income taxes	$ 1,041	$ 1,040	$ 3,087	$ 2,148

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Feb. 28, 2018
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock			$ 20,248,000	$ 5,791,000
Share Repurchase Plan, February 2018
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board					$ 100,000,000
Share repurchases (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)				32,200,000
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)	22,102	13,560	18,736	15,457
At The Market Offerings | Common Stock
Stockholders Equity Note [Line Items]
Stock issuance program, authorized amount	$ 175,000,000		$ 175,000,000
Issuance of common stock (in shares)			1,466,669
Net proceeds from issuance of common stock			$ 18,000,000
Remaining capacity	$ 92,000,000		92,000,000
Direct Stock Purchases and Dividend Reinvestment Plan | Common Stock
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock			$ 1,000,000
Shares remaining for future offerings	6,000,000		6,000,000
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)	1,585,709		2,391,777	350,088
Direct stock purchase and dividend reinvestment plan (in shares)			119,040	119,040
Share repurchases (in shares)		3,047,335		3,047,335

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Basic Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$ 88,286	$ 141,812	$ 275,568	$ (636,142)
Less: Dividends and undistributed earnings allocated to participating securities	(2,984)	(4,067)	(8,979)	(1,427)
Net income (loss) allocated to common shareholders	$ 85,302	$ 137,745	$ 266,589	$ (637,569)
Basic weighted average common shares outstanding (in shares)	112,995,847	113,403,102	112,754,691	113,952,308
Basic Earnings (Loss) per Common Share (in dollars per share)	$ 0.75	$ 1.21	$ 2.36	$ (5.60)
Diluted Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$ 88,286	$ 141,812	$ 275,568	$ (636,142)
Less: Dividends and undistributed earnings allocated to participating securities	(2,747)	(3,512)	(8,151)	(1,427)
Add back: Interest expense on convertible notes for the period, net of tax	6,870	6,990	20,585	0
Net income (loss) allocated to common shareholders	$ 92,409	$ 145,290	$ 288,002	$ (637,569)
Weighted average common shares outstanding (in shares)	112,995,847	113,403,102	112,754,691	113,952,308
Net effect of dilutive equity awards (in shares)	292,749	0	253,819	0
Net effect of assumed convertible notes conversion to common shares (in shares)	28,566,875	28,566,875	28,566,875	0
Diluted weighted average common shares outstanding (in shares)	141,855,471	141,969,977	141,575,385	113,952,308
Diluted Earnings (Loss) per Common Share (in dollars per share)	$ 0.65	$ 1.02	$ 2.03	$ (5.60)

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 26,488	$ 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
Number of shares purchased by employees (in shares)		546,093	489,886
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		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)		445,183	282,424
Number of stock awards granted (in shares)		272,261,000
Number of stock awards vested (in shares)		64,759,000
Number of stock awards forfeited (in shares)		44,743,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		3,318,540	2,805,144
Number of stock awards granted (in shares)		700,552,000
Number of stock awards vested (in shares)		1,546,724	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	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)		7,273,676	7,957,891
Redwood Incentive Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 187	$ 564
Redwood Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		4,052	3,540
Redwood Incentive Plan | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		17,301	17,766
Redwood Incentive Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 4,864	$ 5,794

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	9 Months Ended
	Sep. 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	8,471
Performance-based valuation adjustment	1,072
Equity grant forfeitures	(1,222)
Equity compensation expense	(9,497)
Unrecognized Compensation Cost at End of Period	26,488
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	(375)
Unrecognized Compensation Cost at End of Period	187
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	(670)
Equity compensation expense	(1,188)
Unrecognized Compensation Cost at End of Period	4,052
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	5,766
Performance-based valuation adjustment	0
Equity grant forfeitures	(550)
Equity compensation expense	(5,681)
Unrecognized Compensation Cost at End of Period	17,301
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	(2,002)
Unrecognized Compensation Cost at End of Period	4,864
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	335
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(251)
Unrecognized Compensation Cost at End of Period	$ 84

Mortgage Banking Activities, _3

Mortgage Banking Activities, Net - Components of Mortgage Banking Activities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 2,388	$ (114)	$ 8,357	$ 3,979
Mortgage banking activities, net	63,163	59,395	200,189	24,511
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	1,089	(715)	3,305	(7,069)
Mortgage banking activities, net	32,946	11,864	115,646	(19,222)
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	27,862	12,589	75,496	19,151
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	32	0	(342)	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	3,963	(10)	37,187	(31,304)
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	3,433	938	6,702	(4,256)
Other income, net	8,747	3,491	22,236	13,407
Mortgage banking activities, net	30,217	47,531	84,543	43,733
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	(424)	(89)	930	(21,627)
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	$ 18,461	$ 43,191	$ 54,675	$ 56,209

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
MSR (loss) income, net (1)	$ 295	$ (2,362)	$ 949	$ (5,595)
Agency risk sharing agreement income	575	1,200	2,318	3,146
FHLBC capital stock dividend	3	116	53	1,201
Bridge loan fees	1,131	716	2,735	2,520
Other	384	216	2,302	2,707
Other income, net	$ 2,388	$ (114)	$ 8,357	$ 3,979

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	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Fixed compensation expense		$ 11,285	$ 10,103	$ 34,359	$ 36,605
Annual variable compensation		19,844	5,882	51,021	9,171
Long-term incentive award expense		4,915	2,639	14,766	7,896
Acquisition-related equity compensation expense		1,189	1,212	3,613	3,636
Systems and consulting		2,975	2,145	9,224	7,752
Office costs		2,197	1,859	6,029	5,854
Accounting and legal		1,197	1,601	3,132	6,605
Corporate costs		964	831	2,528	2,128
Other		3,126	1,358	7,165	5,185
Total General and Administrative Expenses		47,692	27,630	131,837	84,832
Commissions		1,906	879	4,830	3,027
Underwriting costs		2,351	771	5,872	3,289
Transfer and holding costs		364	508	1,226	1,400
Total Loan Acquisition Costs		4,621	2,158	11,928	7,716
Goodwill impairment expense		0	0	0	88,675
Amortization of purchase-related intangible assets		3,873	3,873	11,619	12,052
Other		150	3,915	485	3,559
Total Other Expenses		4,023	7,788	12,104	104,286
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses		56,336	$ 37,576	155,869	$ 196,834
Settlement in Common Stock
Business Acquisition [Line Items]
Long-term incentive award expense		3,000		10,000
Settlement in Cash
Business Acquisition [Line Items]
Long-term incentive award expense		$ 1,000		$ 4,000
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Contingency [Line Items]
Provision from (benefit for) income taxes	$ (4,323)	$ 9,113	$ 13,907	$ (13,079)
Federal
Income Tax Contingency [Line Items]
Deferred tax asset valuation allowance	17,000		17,000
State
Income Tax Contingency [Line Items]
Deferred tax asset valuation allowance	$ 3,000		$ 3,000

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	9 Months Ended
	Sep. 30, 2021	Sep. 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	(13.10%)	(23.60%)
Change in valuation allowance	(6.80%)	(4.00%)
Dividends paid deduction	(4.90%)	0.00%
Effective Tax Rate	4.80%	2.00%

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Interest income	$ 145,722	$ 121,982	$ 412,722	$ 450,009
Interest expense	(103,754)	(100,411)	(314,371)	(349,748)
Net Interest Income	41,968	21,571	98,351	100,261
Non-interest Income (Loss)
Mortgage banking activities, net	63,163	59,395	200,189	24,511
Investment fair value changes, net	26,077	107,047	120,644	(611,557)
Other income, net	2,388	(114)	8,357	3,979
Realized gains, net	6,703	602	17,803	30,419
Total non-interest income (loss), net	98,331	166,930	346,993	(552,648)
General and administrative expenses	(47,692)	(27,630)	(131,837)	(84,832)
Loan acquisition costs	(4,621)	(2,158)	(11,928)	(7,716)
Other expenses	(4,023)	(7,788)	(12,104)	(104,286)
(Provision for) benefit from income taxes	4,323	(9,113)	(13,907)	13,079
Net Income (Loss)	88,286	141,812	275,568	(636,142)
Non-cash amortization (expense) income, net	(570)	(6,333)	(12,815)	(19,377)
Other significant non-cash expense: goodwill impairment	0	0	0	(88,675)
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Interest income	44,220	26,672	104,801	123,956
Interest expense	(25,395)	(21,401)	(65,488)	(87,725)
Net Interest Income	18,825	5,271	39,313	36,231
Non-interest Income (Loss)
Mortgage banking activities, net	32,946	11,864	115,646	(19,222)
Investment fair value changes, net	2,285	2,443	8,958	(159,107)
Other income, net	874	(2,011)	4,566	(2,278)
Realized gains, net	6,389	0	15,484	2,001
Total non-interest income (loss), net	42,494	12,296	144,654	(178,606)
General and administrative expenses	(8,989)	(4,602)	(30,539)	(12,901)
Loan acquisition costs	(2,395)	(304)	(5,698)	(1,512)
Other expenses	0	(3,309)	(6)	(3,309)
(Provision for) benefit from income taxes	(11,139)	(826)	(25,289)	7,827
Net Income (Loss)	38,796	8,526	122,435	(152,270)
Non-cash amortization (expense) income, net	5,862	1,785	8,867	732
Other significant non-cash expense: goodwill impairment				0
Operating Segments | Business Purpose Lending
Segment Reporting Information [Line Items]
Interest income	67,235	55,930	202,155	162,732
Interest expense	(46,834)	(44,159)	(151,351)	(113,143)
Net Interest Income	20,401	11,771	50,804	49,589
Non-interest Income (Loss)
Mortgage banking activities, net	30,217	47,531	84,543	43,733
Investment fair value changes, net	3,470	16,892	10,551	(84,837)
Other income, net	1,184	623	3,044	3,493
Realized gains, net	314	0	812	0
Total non-interest income (loss), net	35,185	65,046	98,950	(37,611)
General and administrative expenses	(13,987)	(9,321)	(38,834)	(29,977)
Loan acquisition costs	(2,175)	(1,660)	(6,088)	(5,630)
Other expenses	(3,873)	(3,874)	(11,523)	(100,743)
(Provision for) benefit from income taxes	(3,485)	(8,544)	(6,988)	477
Net Income (Loss)	32,066	53,418	86,321	(123,895)
Non-cash amortization (expense) income, net	(4,713)	(6,719)	(16,154)	(18,035)
Other significant non-cash expense: goodwill impairment				(88,675)
Operating Segments | Third-Party Investments
Segment Reporting Information [Line Items]
Interest income	33,218	37,576	102,180	155,583
Interest expense	(21,370)	(24,238)	(66,883)	(111,666)
Net Interest Income	11,848	13,338	35,297	43,917
Non-interest Income (Loss)
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	20,569	87,890	102,303	(366,696)
Other income, net	0	340	5	1,072
Realized gains, net	0	602	1,507	3,236
Total non-interest income (loss), net	20,569	88,832	103,815	(362,388)
General and administrative expenses	(1,415)	(709)	(3,476)	(4,230)
Loan acquisition costs	(51)	(194)	(138)	(567)
Other expenses	(150)	(470)	(592)	347
(Provision for) benefit from income taxes	(335)	257	(912)	4,775
Net Income (Loss)	30,466	101,054	133,994	(318,146)
Non-cash amortization (expense) income, net	276	117	317	1,170
Other significant non-cash expense: goodwill impairment				0
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,049	1,804	3,586	7,738
Interest expense	(10,155)	(10,613)	(30,649)	(37,214)
Net Interest Income	(9,106)	(8,809)	(27,063)	(29,476)
Non-interest Income (Loss)
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	(247)	(178)	(1,168)	(917)
Other income, net	330	934	742	1,692
Realized gains, net	0	0	0	25,182
Total non-interest income (loss), net	83	756	(426)	25,957
General and administrative expenses	(23,301)	(12,998)	(58,988)	(37,724)
Loan acquisition costs	0	0	(4)	(7)
Other expenses	0	(135)	17	(581)
(Provision for) benefit from income taxes	19,282	0	19,282	0
Net Income (Loss)	(13,042)	(21,186)	(67,182)	(41,831)
Non-cash amortization (expense) income, net	$ (1,995)	$ (1,516)	$ (5,845)	(3,244)
Other significant non-cash expense: goodwill impairment				$ 0

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Interest income	$ 145,722	$ 121,982	$ 412,722	$ 450,009
Interest expense	(103,754)	(100,411)	(314,371)	(349,748)
Net Interest Income	41,968	21,571	98,351	100,261
Investment fair value changes, net	26,077	107,047	120,644	(611,557)
Other	384	216	2,302	2,707
Realized gains, net	6,703	602	17,803	30,419
Total non-interest income (loss), net	98,331	166,930	346,993	(552,648)
General and administrative expenses	(47,692)	(27,630)	(131,837)	(84,832)
Loan acquisition costs	(4,621)	(2,158)	(11,928)	(7,716)
Other expenses	(4,023)	(7,788)	(12,104)	(104,286)
Benefit from (provision for) income taxes	4,323	(9,113)	(13,907)	13,079
Net Income (Loss)	88,286	141,812	275,568	(636,142)
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,049	1,804	3,586	7,738
Interest expense	(10,155)	(10,613)	(30,649)	(37,214)
Net Interest Income	(9,106)	(8,809)	(27,063)	(29,476)
Investment fair value changes, net	(247)	(178)	(1,168)	(917)
Other	330	934	742	1,692
Realized gains, net	0	0	0	25,182
Total non-interest income (loss), net	83	756	(426)	25,957
General and administrative expenses	(23,301)	(12,998)	(58,988)	(37,724)
Loan acquisition costs	0	0	(4)	(7)
Other expenses	0	(135)	17	(581)
Benefit from (provision for) income taxes	19,282	0	19,282	0
Net Income (Loss)	(13,042)	(21,186)	(67,182)	(41,831)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	1,042	1,795	3,559	7,674
Interest expense	(641)	(1,059)	(2,271)	(5,099)
Net Interest Income	401	736	1,288	2,575
Investment fair value changes, net	(247)	(81)	(1,162)	(702)
Other	0	0	0	0
Realized gains, net			0	0
Total non-interest income (loss), net	(247)	(81)	(1,162)	(702)
General and administrative expenses	0	0	0	0
Loan acquisition costs			0	0
Other expenses	0	0	0	0
Benefit from (provision for) income taxes	0	0	0	0
Net Income (Loss)	154	655	126	1,873
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	7	9	27	64
Interest expense	(9,514)	(9,554)	(28,378)	(32,115)
Net Interest Income	(9,507)	(9,545)	(28,351)	(32,051)
Investment fair value changes, net	0	(97)	(6)	(215)
Other	330	934	742	1,692
Realized gains, net			0	25,182
Total non-interest income (loss), net	330	837	736	26,659
General and administrative expenses	(23,301)	(12,998)	(58,988)	(37,724)
Loan acquisition costs			(4)	(7)
Other expenses	0	(135)	17	(581)
Benefit from (provision for) income taxes	19,282	0	19,282	0
Net Income (Loss)	$ (13,196)	$ (21,841)	$ (67,308)	$ (43,704)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 353,286	$ 344,125
Other investments	[1]	422,366	348,175
Intangible assets	[1]	45,246	56,865
Total Assets	[1]	13,072,714	10,355,066
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		6,216,468	4,249,051
Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,693,555	4,136,353
Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		482,791	492,221
Operating Segments | Residential Lending
Segment Reporting Information [Line Items]
Real estate securities		150,368	160,780
Other investments		12,389	8,815
Intangible assets		0	0
Total Assets		4,219,950	1,989,802
Operating Segments | Residential Lending | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		3,974,829	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		6,767	21,627
Intangible assets		45,246	56,865
Total Assets		4,860,226	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		4,693,555	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		202,918	183,345
Other investments		379,102	317,282
Intangible assets		0	0
Total Assets		3,088,815	3,232,415
Operating Segments | Third-Party Investments | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		1,999,405	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		482,791	492,221
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		24,108	451
Intangible assets		0	0
Total Assets		903,723	809,809
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		242,234	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 September 30, 2021 and December 31, 2020, assets of consolidated VIEs totaled $9,358,317 and $8,141,069, respectively. At September 30, 2021 and December 31, 2020, liabilities of consolidated VIEs totaled $8,391,761 and $7,348,713, respectively. See Note 4 for further discussion.