Redwood Trust (RWT) 10-K 1 Mar 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 21, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-13759
Entity Registrant Name	REDWOOD TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	68-0329422
Entity Address, Address Line One	One Belvedere Place, Suite 300
Entity Address, City or Town	Mill Valley,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94941
City Area Code	415
Local Phone Number	389-7373
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 835,910,598
Entity Common Stock, Shares Outstanding		113,588,813
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement to be filed with the Securities and Exchange Commission under Regulation 14A within 120 days after the end of registrant’s fiscal year covered by this Annual Report are incorporated by reference into Part III.
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0000930236
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RWT
Security Exchange Name	NYSE
10% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	10% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock, par value $0.01 per share
Trading Symbol	RWT PRA
Security Exchange Name	NYSE

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	GRANT THORNTON LLP
Auditor Location	Newport Beach, California
Auditor Firm ID	248

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
ASSETS
Real estate securities, at fair value	[1]	$ 240,475	$ 377,411
Home equity investments	[1]	403,462	192,740
Other investments	[1]	390,938	449,229
Cash and cash equivalents	[1]	258,894	450,485
Restricted cash	[1]	70,470	80,999
Goodwill	[1]	23,373	0
Intangible assets	[1]	40,892	41,561
Derivative assets	[1]	20,830	26,467
Other assets	[1]	211,240	231,117
Total Assets	[1]	13,030,899	14,706,944
Liabilities
Short-term debt	[1]	2,029,679	2,177,362
Derivative liabilities	[1]	16,855	3,317
Accrued expenses and other liabilities	[1]	180,203	245,788
Asset-backed securities issued (includes $7,424,132 and $8,843,147 at fair value), net	[1]	7,986,752	9,253,557
Long-term debt, net	[1]	1,733,425	1,640,833
Total liabilities	[1]	11,946,914	13,320,857
Commitments and Contingencies (see Note 17)	[1]
Equity
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 113,484,675 and 114,892,309 issued and outstanding	[1]	1,135	1,149
Additional paid-in capital	[1]	2,349,845	2,316,799
Accumulated other comprehensive loss	[1]	(68,868)	(8,927)
Cumulative earnings	[1]	1,153,370	1,316,890
Cumulative distributions to stockholders	[1]	(2,351,497)	(2,239,824)
Total equity	[1]	1,083,985	1,386,087
Total Liabilities and Equity	[1]	13,030,899	14,706,944
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	780,781	1,845,282
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,832,407	5,747,150
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	364,073	358,309
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,968,513	4,432,680
Consolidated Agency multifamily loans, at fair value
ASSETS
Fair value of loans	[1]	$ 424,551	$ 473,514
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
ABS issued, net, At fair value		$ 7,424,132	$ 8,843,147
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Common stock, authorized (in shares)		395,000,000	395,000,000
Common stock, issued (in shares)		113,484,675	114,892,309
Common stock, outstanding (in shares)		113,484,675	114,892,309
Assets	[1]	$ 13,030,899	$ 14,706,944
Variable Interest Entity, Primary Beneficiary
Assets		9,257,291	10,661,081
Liabilities		$ 8,270,276	$ 9,619,347
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest Income
Residential loans	$ 250,502	$ 204,801	$ 222,746
Business purpose loans	362,481	270,791	217,617
Consolidated Agency multifamily loans	18,938	19,266	54,813
Real estate securities	37,708	54,704	49,605
Other interest income	38,225	25,364	27,135
Total interest income	707,854	574,926	571,916
Interest Expense
Short-term debt	(84,343)	(42,581)	(50,895)
Asset-backed securities issued	(370,219)	(305,801)	(299,708)
Long-term debt	(97,838)	(78,367)	(97,402)
Total interest expense	(552,400)	(426,749)	(448,005)
Net Interest Income	155,454	148,177	123,911
Non-interest (Loss) Income
Mortgage banking activities, net	(13,659)	235,744	78,472
Investment fair value changes, net	(175,558)	128,049	(588,438)
Other income, net	21,204	12,018	4,188
Realized gains, net	5,334	17,993	30,424
Total non-interest (loss) income, net	(162,679)	393,804	(475,354)
General and administrative expenses	(140,908)	(165,218)	(113,498)
Portfolio management costs	(7,951)	(5,758)	(4,204)
Loan acquisition costs	(11,766)	(16,219)	(8,525)
Other expenses	(15,590)	(16,695)	(108,785)
Net (Loss) Income before Benefit from (Provision for) Income Taxes	(183,440)	338,091	(586,455)
Benefit from (Provision for) income taxes	19,920	(18,478)	4,608
Net (Loss) Income	$ (163,520)	$ 319,613	$ (581,847)
Basic earnings (loss) per common share (in dollars per share)	$ (1.43)	$ 2.73	$ (5.12)
Diluted earnings (loss) per common share (in dollars per share)	$ (1.43)	$ 2.37	$ (5.12)
Basic weighted average shares outstanding (in shares)	117,227,846	113,230,190	113,935,605
Diluted weighted average shares outstanding (in shares)	117,227,846	142,070,301	113,935,605

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net (Loss) Income	$ (163,520)	$ 319,613	$ (581,847)
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale securities	(64,704)	8,016	(3,951)
Reclassification of unrealized loss (gain) on available-for-sale securities to net (loss) income	636	(16,849)	(12,165)
Net unrealized loss on interest rate agreements	0	0	(32,806)
Reclassification of unrealized loss on interest rate agreements to net income	4,127	4,127	3,188
Total other comprehensive loss	(59,941)	(4,706)	(45,734)
Total Comprehensive (Loss) Income	$ (223,461)	$ 314,907	$ (627,581)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive 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 [Roll Forward]
Net (loss) income	(581,847)				(581,847)
Other comprehensive loss	(45,734)			(45,734)
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)		434,217
Employee stock purchase and incentive plans	(3,952)	$ 4	(3,956)
Non-cash equity award compensation	15,298		15,298
Share repurchases (in shares)		(3,047,335)
Share repurchases	(21,659)	$ (30)	(21,629)
Common dividends declared	(83,985)					(83,985)
Ending balance (in shares) at Dec. 31, 2020		112,090,006
Balance at End 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 [Roll Forward]
Net (loss) income	319,613				319,613
Other comprehensive loss	(4,706)			(4,706)
Issuance of common stock (in shares)		2,503,662
Issuance of common stock	34,708	$ 25	34,683
Employee stock purchase and incentive plans (in shares)		298,641
Employee stock purchase and incentive plans	(1,657)	$ 3	(1,660)
Non-cash equity award compensation	18,902		18,902
Share repurchases (in shares)		0
Share repurchases	0	$ 0	0
Common dividends declared	(91,672)					(91,672)
Ending balance (in shares) at Dec. 31, 2021		114,892,309
Balance at End of Period at Dec. 31, 2021	1,386,087	$ 1,149	2,316,799	(8,927)	1,316,890	(2,239,824)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(163,520)				(163,520)
Other comprehensive loss	(59,941)			(59,941)
Issuance of common stock (in shares)		5,232,869
Issuance of common stock	67,476	$ 52	67,424
Employee stock purchase and incentive plans (in shares)		488,388
Employee stock purchase and incentive plans	(1,888)	$ 5	(1,893)
Non-cash equity award compensation	23,940		23,940
Share repurchases (in shares)		(7,128,891)
Share repurchases	(56,496)	$ (71)	(56,425)
Common dividends declared	(111,673)					(111,673)
Ending balance (in shares) at Dec. 31, 2022		113,484,675
Balance at End of Period at Dec. 31, 2022	$ 1,083,985	$ 1,135	$ 2,349,845	$ (68,868)	$ 1,153,370	$ (2,351,497)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.92	$ 0.78	$ 0.725

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows From Operating Activities:
Net (loss) income		$ (163,520)	$ 319,613	$ (581,847)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Amortization of premiums, discounts, and debt issuance costs, net		6,254	(9,789)	8,550
Depreciation and amortization of non-financial assets		15,922	16,784	17,365
Originations of held-for-sale loans		(1,077,262)	(1,258,115)	(1,004,058)
Purchases of held-for-sale loans		(3,841,952)	(13,188,434)	(4,431,468)
Proceeds from sales of held-for-sale loans		4,316,792	8,639,769	4,776,469
Principal payments on held-for-sale loans		196,464	84,244	62,736
Net settlements of derivatives		198,963	44,755	(201,036)
Non-cash equity award compensation expense		23,940	18,902	15,298
Goodwill impairment expense		0	0	88,675
Market valuation adjustments		227,186	(321,433)	541,399
Realized gains, net		(5,334)	(17,993)	(30,424)
Net change in:
Accrued interest receivable and other assets		42,585	(64,835)	301,381
Accrued interest payable and accrued expenses and other liabilities		(79,178)	41,967	(68,507)
Net cash used in operating activities		(139,140)	(5,694,565)	(505,467)
Cash Flows From Investing Activities:
Originations of loan investments		(1,638,554)	(894,908)	(426,404)
Purchases of loan investments		(22,006)	(65,315)	0
Proceeds from sales of loan investments		2,280	9,484	1,574,160
Principal payments on loan investments		2,002,630	2,601,416	2,256,196
Purchases of real estate securities		(15,006)	(68,643)	(112,626)
Sales of securities held in consolidated securitization trusts		0	8,197	142,990
Proceeds from sales of real estate securities		31,729	39,652	658,899
Principal payments on real estate securities		32,735	60,667	27,210
Purchases of servicer advance investments		0	(196,583)	(179,419)
Repayments from servicer advance investments, net		70,589	76,223	107,527
Acquisition of Riverbend, net of cash acquired		(40,636)	0	0
Purchases of HEIs		(248,218)	(133,547)	734
Repayments on HEIs		42,744	0	0
Other investing activities, net		(4,401)	(32,547)	21,147
Net cash provided by investing activities		213,886	1,404,096	4,070,414
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		4,842,446	13,235,028	5,496,761
Repayments on short-term debt		(5,963,666)	(11,404,475)	(7,303,543)
Proceeds from issuance of asset-backed securities		1,420,289	4,472,071	1,684,778
Repayments on asset-backed securities issued		(1,453,511)	(1,989,762)	(1,493,438)
Proceeds from issuance of long-term debt		2,154,135	1,455,383	1,473,590
Deferred long-term debt issuance costs paid		(21,115)	(4,089)	(10,244)
Repayments on long-term debt		(1,148,064)	(1,421,662)	(2,974,795)
Net settlements of derivatives		0	0	(84,336)
Net proceeds from issuance of common stock		68,035	21,944	5,881
Payments for repurchase of common stock		(56,496)	0	(21,659)
Taxes paid on equity award distributions		(2,447)	(2,267)	(4,286)
Dividends paid		(111,673)	(91,672)	(83,985)
Other financing activities, net		(4,799)	7,004	3,946
Net cash (used in) provided by financing activities		(276,866)	4,277,503	(3,311,330)
Net (decrease) increase in cash and cash equivalents		(202,120)	(12,966)	253,617
Cash, cash equivalents and restricted cash at beginning of period	[1]	531,484	544,450	290,833
Cash, cash equivalents and restricted cash at end of period	[1]	329,364	531,484	544,450
Cash paid during the period for:
Interest		518,595	400,836	456,147
Taxes		4,936	43,144	1,190
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		0	9,375	53,276
Retention of mortgage servicing rights from loan securitizations and sales		4,543	7,065	0
Deconsolidation of multifamily loans held in securitization trusts		0	0	(3,849,779)
Deconsolidation of multifamily ABS issued		0	0	(3,706,789)
Transfers from loans held-for-sale to loans held-for-investment		2,949,262	5,026,723	1,868,656
Transfers from loans held-for-investment to loans held-for-sale		0	92,400	64,520
Transfers from residential loans to real estate owned		8,494	40,038	14,229
Issuance of common stock for 5 Arches acquisition		0	13,375	3,375
Operating lease right-of-use assets obtained in exchange for operating lease liabilities		0	6,977	7,862
Reduction in operating lease liabilities due to lease modification		$ 0	$ 0	$ 1,722
[1]Cash, cash equivalents, and restricted cash at December 31, 2022 included cash and cash equivalents of $259 million and restricted cash of $70 million; at December 31, 2021 included cash and cash equivalents of $450 million and restricted cash of $81 million; and at December 31, 2020 included 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	Dec. 31, 2022	[1]	Dec. 31, 2021	[1]	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 258,894		$ 450,485		$ 461,000
Restricted cash	$ 70,470		$ 80,999		$ 83,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Organization

Organization	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit, with a mission to help make quality housing, whether rented or owned, accessible to all American households. 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 well 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 securities. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential, business purpose and multifamily assets. 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 Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. 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.” Redwood Trust, Inc. was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. On March 1, 2019, Redwood completed the acquisition of 5 Arches, LLC ("5 Arches"), at which time 5 Arches became a wholly-owned subsidiary of Redwood. On October 15, 2019, Redwood acquired CoreVest American Finance Lender, LLC and certain affiliated entities ("CoreVest"), at which time CoreVest became wholly owned by Redwood. During 2020, the operations of 5 Arches were subsequently combined with those of CoreVest under the CoreVest brand. On July 1, 2022, Redwood acquired Riverbend Funding, LLC ("Riverbend"), at which time Riverbend became wholly owned by Redwood. The operations of Riverbend were combined with those of CoreVest under the CoreVest brand. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires. In statements regarding qualification as a REIT, such terms refer solely to Redwood Trust, Inc. Refer to Item 1 - Business in this Annual Report on Form 10-K for additional information on our business.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021, and 2020. These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at December 31, 2022 and 2021, and results of operations for all periods presented. In 2022, we changed the presentation of our Consolidated Balance Sheets to include a new line item "Home equity investments," the balance of which was previously included as a component of the "Other Investments" line item. All applicable prior period amounts presented in this document were conformed to this presentation. Additionally, in 2022, we changed the presentation of our Consolidated Statements of Income (Loss) to include a new line item, "Portfolio management costs," for which amounts were previously included in the "General and Administrative expenses" and "Loan acquisition costs" line items. All prior period amounts presented in this document were conformed to this presentation. 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 BPL term and bridge loans ("CAFL") and an entity 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 Legacy Sequoia, 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 Consolidated Agency multifamily loans, at fair value, the underlying BPL term 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 HEI securitization entity are shown under Home equity 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 record 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 15 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 Riverbend Funding, LLC On July 1, 2022, we acquired Riverbend Funding, LLC ("Riverbend"), a private mortgage lender for residential transitional and commercial real estate investors. Aggregate consideration for this acquisition included an initial cash payment of approximately $44 million (with a remaining estimated provisional purchase consideration payable subject to reconciliation and final settlement), and a potential earnout component to be paid contingent on Riverbend generating specified revenues over a threshold amount during the two-year period ending July 1, 2024, up to a maximum potential amount payable of $25.3 million. Based on the terms of the merger agreement, we determined that the earnout component should be accounted for as contingent purchase consideration, which was valued at zero on July 1, 2022. We accounted for the acquisition of Riverbend under the acquisition method of accounting pursuant to ASC 805. We performed the purchase price allocations and recorded underlying assets acquired and liabilities assumed based on their estimated fair values using the information available as of each acquisition date, with the excess of the purchase price allocated to goodwill. The following table summarizes our purchase price allocations related to the acquisition of Riverbend through December 31, 2022. Table 2.1 – Purchase Price Allocations (In Thousands) Riverbend Acquisition Date July 1, 2022 Purchase price: Cash $ 44,126 Provisional consideration payable 153 Total consideration $ 44,279 Allocated to: Business purpose loans, at fair value $ 59,748 Other investments 2,443 Cash and cash equivalents 3,490 Other assets 12,982 Goodwill 23,373 Intangible assets 13,300 Total assets acquired 115,336 Short-term debt, net 67,423 Accrued expenses and other liabilities 3,634 Total liabilities assumed 71,057 Total net assets acquired $ 44,279 We recognized $1 million of acquisition costs related to our acquisition of Riverbend during the year ended December 31, 2022. These costs primarily related to accounting, consulting, and legal expenses and are included in our General and administrative expenses on our consolidated statements of income (loss). In connection with the acquisition of Riverbend on July 1, 2022, and of 5 Arches and CoreVest in 2019, we identified and recorded finite-lived intangible assets totaling $13 million, $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 December 31, 2022 and 2021. Table 2.2 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at December 31, 2022 Carrying Value at December 31, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (21,547) $ 34,753 7 Broker network 18,100 (13,877) 4,223 5 Non-compete agreements 11,400 (9,817) 1,583 3 Tradenames 4,400 (4,067) 333 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (53,708) $ 40,892 6 Intangible Assets at Acquisition Accumulated Amortization at December 31, 2021 Carrying Value at December 31, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (14,291) $ 31,009 7 Broker network 18,100 (10,257) 7,843 5 Non-compete agreements 9,500 (7,597) 1,903 3 Tradenames 4,000 (3,194) 806 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (39,739) $ 41,561 6 All of our intangible assets are amortized on a straight-line basis. For the years ended December 31, 2022 and 2021, we recorded intangible asset amortization expense of $14 million and $15 million, respectively. Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year (In Thousands) December 31, 2022 2023 $ 12,429 2024 9,412 2025 8,426 2026 6,696 2027 1,571 2028 and thereafter 2,358 Total Future Intangible Asset Amortization $ 40,892 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 December 31, 2022. We recorded total goodwill of $23 million during the year ended December 31, 2022 as a result of the total consideration exceeding the fair value of the net assets acquired from Riverbend. The goodwill was attributed to the expected business synergies and expansion into new business purpose loan markets, as well as access to the knowledgeable and experienced workforce continuing to provide complementary sourcing of assets for the business. We expect $23 million of this goodwill to be deductible for tax purposes. For reporting purposes, we included the intangible assets and goodwill from these acquisitions within our Business Purpose Mortgage Banking segment. During the first quarter of 2020, as a result of the deterioration in economic conditions caused by the spread of the COVID-19 pandemic (the "pandemic"), and its impact on our business, we concluded that the fair value of our Business Purpose Mortgage Banking reporting unit was less than its carrying value, including goodwill, and we recorded a non-cash $89 million goodwill impairment expense through Other expenses on our consolidated statements of income (loss). In conjunction with our assessment of goodwill, we also assessed our intangible assets for impairment at March 31, 2020 and determined they were not impaired. Table 2.4 – Goodwill - Activity Year Ended December 31, (In Thousands) 2022 2021 Beginning Balance $ — $ — Goodwill recognized from acquisition 23,373 — Impairment — — Ending Balance $ 23,373 $ — The potential liability resulting from the contingent consideration arrangement with Riverbend was recorded at its acquisition-date fair value of zero as part of the total consideration for the acquisition of Riverbend. At December 31, 2022, the estimated fair value of this contingent liability was zero on our consolidated balance sheets. Our contingent consideration liability is recorded at fair value and periodic changes in the estimated fair value are recorded through Other expenses on our consolidated statements of income (loss). During the year ended December 31, 2022, we did not record any contingent consideration income or expense related to our acquisition of Riverbend. See Note 17 for additional information on our contingent consideration liability. The following unaudited pro forma financial information presents Net interest income, Non-interest (loss) income, and Net (loss) income of Redwood, as if the acquisition of Riverbend occurred as of January 1, 2021. These pro forma amounts have been adjusted to include the amortization of intangible assets for all periods. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2021 and should not be taken as indicative of our future consolidated results of operations. Table 2.5 – Unaudited Pro Forma Financial Information Year Ended December 31, (In Thousands) 2022 2021 Supplementary pro forma information: Net interest income $ 159,404 $ 151,982 Non-interest (loss) income (154,934) 405,092 Net (loss) income (161,599) 322,959

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Business Combinations We use the acquisition method of accounting for business combinations, under which the purchase price is allocated to the fair values of the assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over the amount allocated to the assets acquired and liabilities assumed is recorded as goodwill. Acquisition-related costs are expensed as incurred. Fair Value Measurements Our consolidated financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the assets that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated. In circumstances where relevant market inputs cannot be obtained, increased analysis and management judgment are required to estimate fair value. This generally requires us to establish internal assumptions about future cash flows and appropriate risk-adjusted discount rates. Regardless of the valuation inputs we apply, the objective of fair value measurement for assets is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price. See Note 5 for further discussion on fair value measurements. Fair Value Option We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income (loss). We elect the fair value option for certain residential loans, business purpose loans, interest-only (“IO”) and certain subordinate securities, MSRs, servicer advance investments, HEI, and certain of our other investments. We generally elect the fair value option for residential and business purpose loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term and for BPL bridge loans due to their shorter duration. We elect the fair value option for our IO and certain subordinate securities, and MSRs, for which we may hedge market interest rate risk. In addition, we elect the fair value option for the assets and liabilities of our consolidated Sequoia, Freddie Mac SLST, Freddie Mac K-Series, CAFL Term, and HEI entities in accordance with GAAP accounting for collateralized financing entities ("CFEs"). See Note 5 for further discussion on the fair value option. Real Estate Loans Residential Loans - Held-for-Sale at Fair Value Residential loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor. We generally elect the fair value option for residential loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Mortgage banking activities, net. Residential Loans - Held-for-Investment At Fair Value We record residential loans held at consolidated Sequoia and Freddie Mac SLST entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue when earned and deemed collectible. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Business Purpose Loans We originate and purchase business purpose loans (also referred to as business purpose lending ("BPL") loans), for subsequent securitization, sale, or transfer into our investment portfolio. Business purpose loans are loans to investors in single-family rental and multifamily housing properties, which we classify as either "term" loans (which include loans with maturities that generally range from 3 to 30 years) or "bridge" loans (generally include loans with maturities between 12 and 36 months). Single-family rental loans are mortgage loans secured by residential real estate (primarily 1-4 unit) that the borrower owns as an investment property and rents to residential tenants. BPL bridge loans are mortgage loans which are generally secured by unoccupied residential or multifamily real estate that the borrower owns as an investment and that is being renovated, rehabilitated or constructed. Business Purpose Loans Held-for-Sale at Fair Value – we classify business purpose loans as held-for-sale at fair value when we originate or purchase these loans with the intent to transfer the loans to securitization entities or sell the loans to third parties. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are recurring and reported through our consolidated statements of income (loss) in Mortgage banking activities, net. Business Purpose Loans Held-for-Investment at Fair Value – we classify business purpose loans as held-for-investment at fair value if we intend to hold these loans to maturity. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. In addition, we record loans held at consolidated CAFL Term entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue based on amounts expected to be paid to the securities issued by these entities. Changes in fair value for these loans and related ABS are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Consolidated Agency Multifamily Loans, Held-for-Investment at Fair Value Multifamily loans are mortgage loans secured by multifamily properties, held in a Freddie Mac-sponsored K-series securitization trust that we consolidate. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by the Freddie Mac K-Series entity (which we determined to be more observable) to determine the fair value of the loans. Coupon interest for these loans is recognized as revenue based on amounts expected to be paid to the securities issued by this entity. Changes in fair value for the loans and related ABS are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Repurchase Reserves We sell and have sold residential and business purpose mortgage loans to various parties, including (1) securitization trusts, and (2) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. Additionally, we generally have a direct obligation to repurchase residential whole loans we sell in the event of any early payment defaults (or EPDs) by the underlying mortgage borrowers within certain specified periods following the sales. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery. We establish reserves for mortgage repurchase liabilities related to various representations and warranties that reflect management’s estimate of losses for loans for which we could have a repurchase obligation, based on a combination of factors. Such factors can include estimated future defaults and loan repurchase rates, the potential severity of loss in the event of defaults, and the probability of our being liable for a repurchase obligation. We establish a reserve at the time loans are sold and MSRs are purchased and continually update our reserve estimate during its life. The reserve for mortgage loan repurchase losses is included in other liabilities on our consolidated balance sheets and the related expense is included as a component of Mortgage banking activities, net on our consolidated statements of income (loss). See Note 17 for further discussion on the residential repurchase reserves. Real Estate Securities, at Fair Value Our securities primarily consist of mortgage-backed securities (“MBS”) collateralized by residential loans, re-performing loans ("RPL") and multifamily mortgage loans. We classify our real estate securities as trading or available-for-sale securities. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in Investment fair value changes, net on our consolidated statements of income (loss). Available-for-Sale Securities AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an allowance for credit losses is recognized, as discussed below) and reported in Accumulated other comprehensive income (loss) (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, estimated call dates and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of an allowance for credit losses as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. Upon adoption of ASU 2016-13, "Financial Instruments - Credit Losses" in the first quarter of 2020, we modified our policy for recording impairments on available-for-sale securities. This guidance requires that credit impairments on our available-for-sale securities be recorded in earnings using an allowance for credit losses, with the allowance limited to the amount by which the security's fair value is less than its amortized cost basis. The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the difference between the beneficial interest’s amortized cost and the estimate of cash flows expected to be collected, discounted at the effective interest rate used to accrete the beneficial interest. No allowance is recorded for beneficial interests in an unrealized gain position. Favorable changes in the discounted cash flows will result in a reduction in the allowance for credit losses, if any. Any reduction in allowance for credit losses is recorded in earnings. If the allowance for credit losses has been reduced to zero, the remaining favorable changes are reflected as a prospective increase to the effective interest rate. If we intend to sell or it is more likely than not that we will be required to sell the security before it recovers in value, the entire impairment amount will be recognized in earnings with a corresponding adjustment to the security's amortized cost basis. See Note 9 for further discussion on real estate securities. Home Equity Investment Contracts We invest in home equity investment contracts from third-party originators under flow purchase agreements. 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. We have elected to record these investments at fair value and report changes in fair value through Investment fair value changes, net on our consolidated statements of income (loss). In addition, we record HEIs held at a consolidated HEI securitization entity at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by this entity (which we determined to be more observable) to determine the fair value of the HEIs held at this entity. Changes in fair value of the HEI assets held by this entity and the ABS issued by this entity (including the interest expense component of the ABS issued) are recorded through investment fair value changes, net on our consolidated statements of income (loss). See Note 10 for further discussion on HEIs. Other Investments Servicer Advance Investments Our servicer advance investments are comprised of outstanding servicer advances receivable, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans and a fee component of the related MSR. We have elected to record these investments at fair value. We recognize income from our servicer advance investments when earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income (loss). Our servicer advance investments are marked-to-market on a recurring basis with changes in the fair value reported in Investment fair value changes, net on our consolidated statements of income (loss). See Note 11 for further discussion on our servicer advance 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, net 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, based on availability of financial information from investees, 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). Excess MSRs Our excess MSR investments represent the right to receive a portion of mortgage servicing cash flows in excess of amounts paid for the underlying mortgage loans to be serviced. As owners of excess MSRs, we are not required to be a licensed servicer, and we are not required to assume any servicing duties, advance obligations or liabilities associated with the loan pool underlying the MSR. We have elected to record these investments at fair value. We recognize income from excess MSRs when it is earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income (loss). Changes in fair value are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. See Note 11 for further discussion on excess MSRs. MSRs We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. We contract with licensed sub-servicers to perform servicing functions for loans associated with our MSRs. We have elected the fair value option for all of our MSRs, and they are initially recognized and subsequently carried at their estimated fair values. Servicing fee income from MSRs is recorded on a cash basis when received. Net servicing income and changes in the estimated fair value of MSRs are reported in Other income, net on our consolidated statements of income (loss). See Note 11 for further discussion on MSRs. Cash and Cash Equivalents Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less and money market fund investments which are generally invested in U.S. government securities and are available to us on a daily basis. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions. Restricted Cash Restricted cash primarily includes cash held at our consolidated Servicing Investment entities, and cash associated with our risk-sharing transactions with Fannie Mae and Freddie Mac ("the Agencies"), as well as cash collateral for certain consolidated securitization entities. Goodwill and Intangible Assets Significant judgment is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third-party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired business, retention trends, and our operating plans, among other factors. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis and reviewed for impairment if indicators are present. Additionally, useful lives are evaluated each reporting period to determine if revisions to the remaining periods of amortization are warranted. Goodwill is tested for impairment annually or more frequently if indicators of impairment exist. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. Pursuant to our adoption of ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" in the first quarter of 2020, we modified our goodwill impairment testing policy. We first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If, based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value, we measure the fair value of the reporting unit and record a goodwill impairment charge for the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill. Any such impairment charges would be recorded through Other expenses on our consolidated statements of income (loss). Derivative Financial Instruments Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and interest rate lock commitments ("IRLCs") that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets, and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income (loss) through Other income, net if they are used to manage risks associated with our MSR investments, through Mortgage banking activities , net if they are used to manage risks associated with our mortgage banking activities, or through Investment fair value changes, net if they are used to manage risks associated with our investments. Valuation changes related to residential LPCs and IRLCs are included in Mortgage banking activities, net on our consolidated statements of income (loss). Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in Accumulated other comprehensive (loss) income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income (loss). We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swaps and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Interest Rate Futures Interest rate futures are futures contracts based on U.S. Treasury notes, U.S. dollar-denominated interest rate swaps, or U.S. dollar-denominated interest rate indices. TBA Agreements TBA agreements are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. Loan Purchase Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP. LPCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income (loss) in Mortgage banking activities, net. Interest Rate Lock Commitments IRLCs are agreements we have made with third-party borrowers for business purpose loans that will be originated and held for sale. IRLCs qualify as derivatives under GAAP and are recorded at their estimated fair values on our consolidated balance sheets. Changes in fair value are recurring and are reported through our consolidated statements of income (loss) in Mortgage banking activities, net. See Note 12 for further discussion on derivative financial instruments. Deferred Tax Assets and Liabilities Our deferred tax assets/liabilities are generated by temporary differences in GAAP income and taxable income at our taxable REIT subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax purposes, such as accounting for mortgage servicing rights, security discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP purposes. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods for GAAP purposes, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax purposes. When this occurs, we establish a deferred tax liability. As the income is subsequently realized in future periods for tax purposes, the deferred tax liability is reduced. We may also record deferred tax assets/liabilities resulting from differences in GAAP basis and tax basis of assets and liabilities acquired in a business combination at our taxable REIT subsidiaries. These deferred tax assets/liabilities generally do not affect our GAAP income at the time of establishment as the offsetting accounting entry is recorded in GAAP goodwill. They also do not generally affect GAAP income when they are subsequently realized, as the deferred tax provision or benefit resulting from the realization is offset by a corresponding current tax benefit or provision. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent u

Principles of Consolidation

Principles of Consolidation	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation GAAP requires us to consider whether securitizations we sponsor and other transfers of financial assets should be treated as sales or financings, as well as whether any VIEs that we hold variable interests in – for example, certain legal entities often used in securitization and other structured finance transactions – should be included in our consolidated financial statements. The GAAP principles we apply require us to reassess our requirement to consolidate VIEs each quarter and therefore our determination may change based upon new facts and circumstances pertaining to each VIE. This could result in a material impact to our consolidated financial statements during subsequent reporting periods. Analysis of Consolidated VIEs At December 31, 2022, we consolidated Legacy Sequoia, Sequoia, CAFL, Freddie Mac SLST, Freddie Mac K-Series, and 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 December 31, 2022, we held an 80% ownership interest in, and were responsible for the management of, each entity. See Note 11 for a further description of these entities and the investments they hold and Note 13 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 14 for additional information on the servicer advance financing. During 2021, we consolidated a HEI securitization entity formed to invest in HEIs that we determined was a VIE and for which we determined we were the primary beneficiary. At December 31, 2022 and December 31, 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 13 for additional information on non-controlling interests in the entity. We consolidate the HEI 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. During 2021, we called two of our consolidated CAFL entities and repaid the associated ABS issued. In association with these calls, we transferred $91 million (unpaid principal balance) of loans from held-for-investment to held-for-sale. 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 accounted for under the CFE election effectively represents the fair value of the beneficial interests we own in the entity. In addition to our consolidated VIEs for which we made the CFE election, we consolidate certain 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 securitizations, Freddie Mac SLST re-securitization, and Servicing Investment entities. The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 184,932 $ 3,190,417 $ — $ 1,457,058 $ — $ — $ — $ 4,832,407 Business purpose loans, held-for-investment — — 3,461,367 — — — — 3,461,367 Consolidated Agency multifamily loans — — — — 424,551 — — 424,551 Home equity investments — — — — — — 132,627 132,627 Other investments — — — — — 301,213 — 301,213 Cash and cash equivalents — — 710 — — 12,765 — 13,475 Restricted cash 69 73 26,296 — — — 3,424 29,862 Accrued interest receivable 284 11,227 18,102 5,144 1,293 342 — 36,392 Other assets 637 — 14,265 2,898 — 7,547 50 25,397 Total Assets $ 185,922 $ 3,201,717 $ 3,520,740 $ 1,465,100 $ 425,844 $ 321,867 $ 136,101 $ 9,257,291 Short-term debt $ — $ — $ — $ — $ — $ 206,510 $ — $ 206,510 Accrued interest payable 282 8,880 10,918 3,561 1,167 492 — 25,300 Accrued expenses and other liabilities — 81 4,559 — — 24,745 22,329 51,714 Asset-backed securities issued 184,191 2,971,109 3,115,807 1,222,150 392,785 — 100,710 7,986,752 Total Liabilities $ 184,473 $ 2,980,070 $ 3,131,284 $ 1,225,711 $ 393,952 $ 231,747 $ 123,039 $ 8,270,276 Value of our investments in VIEs (1) 1,285 219,299 385,927 237,807 31,767 90,120 13,062 979,267 Number of VIEs 20 17 19 3 1 3 1 64 Table 4.1 – Assets and Liabilities of Consolidated VIEs (Continued) December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Consolidated Agency multifamily loans — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) 2,634 245,417 339,419 301,795 31,657 102,540 10,451 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, represents the fair value of our economic interests in the VIEs only for consolidated VIEs we account for under the CFE election. CAFL includes BPL term loan securitizations we account for under the CFE election and two BPL bridge loan securitizations for which we did not make the CFE election. As of December 31, 2022 and December 31, 2021, the fair value of our interests in the CAFL Term securitizations were $304 million and $302 million, respectively, and the remaining values were associated with our interests in the CAFL Bridge securitizations, for which the ABS issued is carried at amortized historical cost. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of December 31, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $323 million and $445 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the years ended December 31, 2022, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Year Ended December 31, 2022 Legacy Sequoia CAFL Freddie Mac Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 5,672 $ 126,120 $ 248,220 $ 65,821 $ 18,938 $ 31,185 $ — $ 495,956 Interest expense (5,206) (111,060) (184,069) (52,901) (17,407) (9,570) — (380,213) Net interest income 466 15,060 64,151 12,920 1,531 21,615 — 115,743 Non-interest income Investment fair value changes, net (1,302) (23,818) (34,749) (76,777) 110 (12,953) 2,915 (146,574) Other income — — 1,014 — — — — 1,014 Total non-interest income, net (1,302) (23,818) (33,735) (76,777) 110 (12,953) 2,915 (145,560) General and administrative expenses — — — — — (189) — (189) Other expenses — — — — — (1,695) — (1,695) Income (Loss) from Consolidated VIEs $ (836) $ (8,758) $ 30,416 $ (63,857) $ 1,641 $ 6,778 $ 2,915 $ (31,701) Year Ended December 31, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 4,709 $ 74,025 $ 207,202 $ 76,287 $ 19,266 $ 18,803 $ — $ 400,292 Interest expense (3,040) (59,949) (160,618) (64,635) (17,686) (4,867) — (310,795) Net interest income 1,669 14,076 46,584 11,652 1,580 13,936 — 89,497 Non-interest income Investment fair value changes, net (1,558) 14,176 8,521 62,374 11,599 (5,209) 218 90,121 Other income — — 72 — — — — 72 Total non-interest income, net (1,558) 14,176 8,593 62,374 11,599 (5,209) 218 90,193 General and administrative expenses — — — — — (283) — (283) Other expenses — — — — — (1,689) — (1,689) Income from Consolidated VIEs $ 111 $ 28,252 $ 55,177 $ 74,026 $ 13,179 $ 6,755 $ 218 $ 177,718 Year Ended December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 9,061 $ 87,093 $ 136,950 $ 85,609 $ 54,813 $ 17,665 $ — $ 391,191 Interest expense (5,945) (73,643) (105,732) (66,859) (51,521) (6,441) — (310,141) Net interest income 3,116 13,450 31,218 18,750 3,292 11,224 — 81,050 Non-interest income Investment fair value changes, net (1,512) (13,244) (39,574) (21,160) (81,039) (11,327) — (167,856) Total non-interest income, net (1,512) (13,244) (39,574) (21,160) (81,039) (11,327) — (167,856) General and administrative expenses — — — — — (867) — (867) Other expenses — — — — — 193 — 193 Income (Loss) from Consolidated VIEs $ 1,604 $ 206 $ (8,356) $ (2,410) $ (77,747) $ (777) $ — $ (87,480) We consolidate the assets and liabilities of certain Sequoia, CAFL and 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 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 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. Analysis of Unconsolidated VIEs with Continuing Involvement Since 2012, we have transferred residential loans to 46 Sequoia securitization entities sponsored by us that are still outstanding as of December 31, 2022 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 year ended December 31, 2022, we called three of our unconsolidated Sequoia entities, and purchased $102 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized $0.3 million of 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 December 31, 2022, we held $153 million of loans for sale at fair value that were acquired following the calls, of which $135 million were committed to a sale that settled January 2023. The following table presents information related to securitization transaction that occurred during the years ended December 31, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2022 2021 Principal balance of loans transferred $ — $ 1,231,803 Trading securities retained, at fair value — 7,774 AFS securities retained, at fair value — 1,600 The following table summarizes the cash flows during the years ended December 31, 2022 and 2021 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 Years Ended December 31, (In Thousands) 2022 2021 Proceeds from new transfers $ — $ 1,266,063 MSR fees received 3,069 5,003 Funding of compensating interest, net (45) (160) Cash flows received on retained securities 22,866 47,596 The following table presents the key weighted average assumptions used to value securities retained at the date of securitization for securitizations completed during 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2022 Year Ended December 31, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 11 % 11 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.23 % 0.23 % The following table presents additional information at December 31, 2022 and 2021, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 28,722 $ 18,214 Subordinate securities, classified as AFS 74,367 127,542 Mortgage servicing rights 11,589 6,450 Maximum loss exposure (1) $ 114,678 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,052,922 $ 4,959,234 Principal balance of loans 30+ days delinquent 27,739 30,594 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2022 and 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2022 $ 11,589 $ 28,722 $ 74,367 Expected life (in years) (2) 7 7 16 Prepayment speed assumption (annual CPR) (2) 8 % 10 % 8 % Decrease in fair value from: 10% adverse change $ 311 $ 970 $ 386 25% adverse change 779 2,344 907 Discount rate assumption (2) 11 % 12 % 9 % Decrease in fair value from: 100 basis point increase $ 430 $ 980 $ 7,198 200 basis point increase 832 1,894 13,394 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A N/A $ 31 25% higher losses N/A N/A 76 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A N/A $ 1,528 25% higher losses N/A N/A 3,819 (1) Senior securities included $29 million and $18 million of interest-only securities at December 31, 2022 and 2021, respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages. Analysis of Unconsolidated Third-Party VIEs Third-party VIEs are securitization entities in which we maintain an economic interest, but do not sponsor. Our economic interest may include several securities and other investments from the same third-party VIE, and in those cases, the analysis is performed in consideration of all of our interests. The following table presents a summary of our interests in third-party VIEs at December 31, 2022 and 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) December 31, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 145 $ 3,572 Subordinate 137,241 228,083 Total Mortgage-Backed Securities 137,386 231,655 Excess MSR 7,082 10,400 Total Investments in Third-Party Sponsored VIEs $ 144,468 $ 242,055 We determined that we are not the primary beneficiary of these third-party VIEs, as we do not have the required power to direct the activities that most significantly impact the economic performance of these entities. Specifically, we do not service or manage these entities or otherwise solely hold decision making powers that are significant. As a result of this assessment, we do not consolidate any of the underlying assets and liabilities of these third-party VIEs – we only account for our specific interests in them.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2022 and 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 780,781 $ 780,781 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment, at fair value 4,832,407 4,832,407 5,747,150 5,747,150 Business purpose loans, held-for-sale, at fair value 364,073 364,073 358,309 358,309 Business purpose loans, held-for-investment, at fair value 4,968,513 4,968,513 4,432,680 4,432,680 Consolidated Agency multifamily loans, at fair value 424,551 424,551 473,514 473,514 Real estate securities, at fair value 240,475 240,475 377,411 377,411 Servicer advance investments (1) 269,259 269,259 350,923 350,923 MSRs (1) 25,421 25,421 12,438 12,438 Excess MSRs (1) 39,035 39,035 44,231 44,231 HEIs 403,462 403,462 192,740 192,740 Other investments (1) 6,155 6,155 12,663 12,663 Cash and cash equivalents 258,894 258,894 450,485 450,485 Restricted cash 70,470 70,470 80,999 80,999 Derivative assets 20,830 20,830 26,467 26,467 REO (2) 6,455 4,185 36,126 39,272 Margin receivable (2) 13,802 13,802 7,269 7,269 Liabilities Short-term debt (3) $ 1,853,664 $ 1,853,664 $ 2,177,362 $ 2,177,362 Margin payable (4) 5,944 5,944 24,368 24,368 Guarantee obligations (4) 6,344 4,738 7,459 7,133 HEI securitization non-controlling interest 22,329 22,329 17,035 17,035 Derivative liabilities 16,855 16,855 3,317 3,317 ABS issued net at fair value 7,424,132 7,424,132 8,843,147 8,843,147 at amortized cost 562,620 524,768 410,410 410,471 Other long-term debt, net (5) 1,077,200 1,069,946 988,483 989,570 Convertible notes, net (5) 693,473 638,049 513,629 537,300 Trust preferred securities and subordinated notes, net (5) 138,767 83,700 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) Short-term debt excludes short-term convertible notes, which are included below under "Convertible notes, net." (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are primarily included in Long-Term debt, net on our consolidated balance sheets. Convertible notes, net also includes convertible notes classified as short-term debt. See Note 14 for more information on Short-term debt. During the years ended December 31, 2022 and 2021, we elected the fair value option for $5 million and $59 million of securities, respectively, $3.70 billion and $12.92 billion of residential loans (principal balance), respectively, and $2.90 billion and $2.22 billion of business purpose loans (principal balance), respectively. Additionally, during the years ended December 31, 2022 and 2021, we elected the fair value option for $248 million and $155 million of HEIs, respectively, and $9 million and $15 million of Other Investments, respectively. 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, as well as for certain securities we purchase, including IO securities, fixed-rate securities rated investment grade or higher and HEIs. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2022 and 2021, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2022 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,613,157 $ — $ — $ 5,613,157 Business purpose loans 5,332,586 — — 5,332,586 Consolidated Agency multifamily loans 424,551 — — 424,551 Real estate securities 240,475 — — 240,475 Servicer advance investments 269,259 — — 269,259 MSRs 25,421 — — 25,421 Excess MSRs 39,035 — — 39,035 HEIs 403,462 — — 403,462 Other investments 6,155 — — 6,155 Derivative assets 20,830 5,869 14,625 336 Liabilities HEI securitization non-controlling interest $ 22,329 $ — $ — $ 22,329 Derivative liabilities 16,855 16,841 — 14 ABS issued 7,424,132 — — 7,424,132 Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Consolidated Agency multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other Investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 Liabilities HEI securitization non-controlling interest $ 17,035 $ — $ — $ 17,035 Derivative liabilities 3,317 1,563 1,251 503 ABS issued 8,843,147 — — 8,843,147 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Consolidated Agency Multifamily Loans Trading Securities AFS Servicer Advance Investments Excess MSRs HEIs MSRs and Other Investments (In Thousands) Beginning balance - December 31, 2021 $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Acquisitions 3,692,104 181,814 — 5,006 10,000 — — 248,218 8,638 Originations — 2,715,817 — — — — — — — Sales (3,830,318) (495,472) — (31,729) — — — — (3,299) Principal paydowns (866,474) (1,324,640) (7,975) (1,347) (31,390) (70,589) — (42,744) (158) Gains (losses) in net income (loss), net (970,241) (531,947) (40,987) (34,220) 13,660 (11,075) (5,196) 5,248 9,873 Unrealized losses in OCI, net — — — — (66,916) — — — — Other settlements, net (1) (4,312) (3,975) — — — — — — (8,579) Ending balance - December 31, 2022 $ 5,613,157 $ 5,332,586 $ 424,552 $ 108,329 $ 132,146 $ 269,259 $ 39,035 $ 403,462 $ 31,576 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 1,205,289 Principal paydowns — — (1,394,000) Gains (losses) in net income (loss), net (55,209) 5,294 (1,230,304) Other settlements, net (1) 51,401 — — Ending balance - December 31, 2022 $ 322 $ 22,329 $ 7,424,132 Assets (In Thousands) Residential Business Purpose Loans Consolidated Agency Multifamily Loans Trading AFS Servicer Advance Investments Excess MSRs MSRs and Other Investments Beginning balance - December 31, 2020 $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 34,418 $ 42,440 $ 27,662 Acquisitions 13,139,907 136,685 — 58,917 19,100 196,583 17,830 155,023 15,215 Originations — 2,150,539 — — — — — — — Sales (8,449,328) (211,113) — (34,802) (4,785) — — — — Principal paydowns (1,360,649) (1,307,566) (7,639) (2,713) (57,953) (76,223) — (19,395) (14,751) Gains (losses) in net income, net 16,688 (77,357) (11,068) 23,550 40,735 (926) (8,017) 13,774 (2,846) Unrealized gains in OCI, net — — — — (8,763) — — — — Other settlements, net (1) (3,234) (36,552) — — — — — 898 (179) Ending balance - December 31, 2021 $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Liabilities (In Thousands) Derivatives (2) HEI Securitization Non-Controlling Interest ABS Beginning balance - December 31, 2020 $ 14,450 $ — $ 6,900,362 Acquisitions — 16,639 4,202,070 Principal paydowns — — (1,922,313) Gains (losses) in net income, net 10,437 396 (336,972) Other settlements, net (1) (20,757) — — Ending balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 (1) Other settlements, net for residential and business purpose loans represents the transfer of loans to REO, for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential and business purpose loans, and for MSRs and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (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 fair value 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 December 31, 2022, 2021, and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2022, 2021, and 2020 are not included in this presentation. Table 5.4 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at December 31, 2022, 2021, and 2020 Included in Net Income Included in Net Income (Loss) Years Ended December 31, (In Thousands) 2022 2021 2020 Assets Residential loans at Redwood $ (43,019) $ 5,886 $ 1,138 Business purpose loans (31,927) 9,444 9,420 Net investments in consolidated Sequoia entities (1) (25,563) 12,455 (14,646) Net investments in consolidated Freddie Mac SLST entities (1) (76,811) 62,124 (21,220) Net investments in consolidated Freddie Mac K-Series entities (1) 110 11,599 (9,309) Net investments in consolidated CAFL Term entities (1) (34,899) 8,198 (37,062) Net investment in consolidated HEI securitization entity (1) 8,210 614 — Trading securities (34,027) 738 (83,327) Available-for-sale securities (2,540) — (388) Servicer advance investments (11,076) (926) (8,902) MSRs 9,804 629 (17,545) Excess MSRs (5,196) (8,017) (8,302) HEIs at Redwood (670) 212 (1,884) Other investments (901) (6) (285) Loan purchase and interest rate lock commitments 336 4,633 15,027 Liabilities Non-controlling interest in consolidated HEI entity $ (5,294) $ (396) $ — Loan purchase commitments $ (14) $ (503) $ (577) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income (loss) related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at December 31, 2022, 2021, and 2020, which, netted together represent the change in value of our investments at the consolidated VIEs, under CFE election, excluding REO. The following table presents information on assets recorded at fair value on a non-recurring basis at December 31, 2022 and 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 December 31, 2022 and 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for December 31, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2022 Assets Strategic Investments $ 17,600 $ — $ — $ 17,600 $ 9,965 Gain (Loss) for December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2021 Assets REO $ 588 $ — $ — $ 588 $ (217) The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income (loss) for the years ended December 31, 2022, 2021, and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2022 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (77,192) $ 73,332 $ (15,477) Residential loan purchase and commitments (54,484) 10,401 56,761 BPL term loans held-for-sale, at fair value (91,025) 63,206 82,169 BPL term loan interest rate lock commitments (666) 666 341 BPL bridge loans 3,026 8,253 (4,998) Trading securities (1) 4,249 (352) (4,535) Risk management derivatives, net 157,444 41,060 (47,779) Total mortgage banking activities, net (2) $ (58,648) $ 196,566 $ 66,482 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood (called Sequoia loans) $ (16,651) $ 2,812 $ (93,314) Business purpose loans held-for-investment (7,271) (65) (31,435) Trading securities (38,471) 23,935 (226,196) Servicer advance investments (11,075) (925) (8,901) Excess MSRs (5,196) (8,017) (8,302) Net investments in Legacy Sequoia entities (3) (1,302) (1,558) (1,513) Net investments in Sequoia entities (3) (23,818) 14,176 (13,244) Net investments in Freddie Mac SLST entities (3) (76,777) 62,374 (21,160) Net investment in Freddie Mac K-Series entity (3) 110 11,599 (81,039) Net investments in CAFL Term entities (3) (34,899) 10,271 (36,754) Net investments in HEI securitization entities (3) 2,915 218 — HEIs at Redwood (202) 13,207 (1,883) Other investments 13,468 (366) (5,167) Risk management derivatives, net 26,152 — (59,142) Credit (losses) recoveries on AFS securities (2,540) 388 (388) Total investment fair value changes, net $ (175,557) $ 128,049 $ (588,438) Other Income MSRs $ 8,560 $ (3,182) $ (33,409) Other (1,541) — — Risk management derivatives, net — — 13,966 Total other income (4) $ 7,019 $ (3,182) $ (19,443) Total Market Valuation Gains (Losses), Net $ (227,186) $ 321,433 $ (541,399) (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the 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, 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 HEIs, REO and the ABS issued at the entities, which netted together represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election. (4) Other income presented above does not include net MSR fee income or provisions for repurchases of MSRs, as these amounts do not represent market valuation adjustments. Valuation Policy We maintain policies that specify the methodologies we use to value different types of financial instruments. Significant changes to the valuation methodologies are reviewed by members of senior management to confirm the changes are appropriate and reasonable. Valuations based on information from external sources are performed on an instrument-by-instrument basis with the resulting amounts analyzed individually against internal calculations as well as in the aggregate by product type classification. Initial valuations are performed by our portfolio management groups using the valuation processes described below. Our finance department then independently reviews all fair value estimates to ensure they are reasonable. Finally, members of senior management review all fair value estimates, including an analysis of the methodology and valuation changes from prior reporting periods. Valuation Process We estimate fair values for financial assets or liabilities based on available inputs observed in the marketplace as well as unobservable inputs. We primarily use two pricing valuation techniques: market comparable pricing and discounted cash flow analysis. Market comparable pricing is used to determine the estimated fair value of certain instruments by incorporating known inputs and performance metrics, such as observed prepayment rates, delinquencies, severities, credit support, recent transaction prices, pending transactions, or prices of other similar instruments. Discounted cash flow analysis techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of an instrument and then discounting those cash flows at a rate of return that results in an estimate of fair value. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. We also consider counterparty credit quality and risk as part of our fair value assessments. The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2022 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 $ 643,845 Whole loan spread to swap rate 252 - 252 bps 252 bps Called loan dollar price $ 91 - $ 91 $ 91 Jumbo loans committed to sell 136,905 Whole loan committed sales price $ 94 - $ 101 $ 94 Loans held by Legacy Sequoia (2) 184,932 Liability price N/A N/A Loans held by Sequoia (2) 3,190,417 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,457,058 Liability price N/A N/A Business purpose loans: BPL term loans 358,791 Senior credit spread 175 - 275 bps 225 bps Subordinate credit spread 225 - 962 bps 431 bps Senior credit support 36 - 36 % 36 % IO discount rate 9 - 10 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Whole loan spread 275 - 550 bps 361 bps BPL term loans held by CAFL 2,944,984 Liability price N/A N/A BPL bridge loans 2,028,811 Whole loan discount rate 5 - 15 % 10 % Senior credit spread 310 - 310 bps 310 bps Subordinate credit spread 360 - 1,150 bps 665 bps Senior credit support 43 - 43 % 43 % Prepayment rate (annual CPR) — - — % — % Multifamily loans held by Freddie Mac K-Series (2) 424,551 Liability price N/A N/A Trading and AFS securities 240,475 Discount rate 6 - 18 % 10 % Prepayment rate (annual CPR) 5 - 65 % 10 % Default rate — - 14 % 0.5 % Loss severity — - 50 % 26 % CRT dollar price $ 72 - $ 93 $ 84 HEIs 270,835 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (7) - 4 % 3 % HEIs held by HEI securitization entity 132,627 Discount Rate N/A N/A Servicer advance investments 269,259 Discount rate 2 - 5 % 3 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 18 bps 5 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Assets (continued) MSRs $ 25,421 Discount rate 11 - 22 % 11 % Prepayment rate (annual CPR) 4 - 28 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Excess MSRs 39,035 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 18 % Excess mortgage servicing amount 8 - 19 bps 11 bps Residential loan purchase commitments, net 322 Whole loan spread to swap rate 252 - 252 bps 252 bps Pull-through rate 48 - 100 % 94 % Committed sales price $ 101 — $ 101 $ 101 Liabilities ABS issued (2) At consolidated Sequoia entities 3,155,300 Discount rate 4 - 18 % 7 % Prepayment rate (annual CPR) 5 - 23 % 10 % Default rate — - 14 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL Term entities 2,638,183 Discount rate 2 - 23 % 7 % Prepayment rate (annual CPR) — - 3 % 0.2 % Default rate 5 - 23 % 8 % Loss severity 27 - 40 % 30 % At consolidated Freddie Mac SLST entities 1,137,154 Discount rate 5 - 16 % 6 % Prepayment rate (annual CPR) 6 - 7 % 6 % Default rate 13 - 14 % 14 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 392,785 Discount rate 3 - 10 % 5 % At consolidated HEI entities (4) 100,710 Discount rate 9 - 15 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (7) - 4 % 3 % (1) The weighted average input values for all loan types are based on 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 is 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 December 31, 2022, the fair value of securities we owned at the consolidated Sequoia, CAFL Term, Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $219 million, $304 million, $323 million, $32 million, and $13 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). Determination of Fair Value A description of the instruments measured at fair value as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy is listed herein. We generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding table. Accordingly, a significant increase or decrease in any of these inputs – such as anticipated credit losses, prepayment rates, interest rates, or other valuation assumptions – in isolation would likely result in a significantly lower or higher fair value measurement. Residential loans, business purpose loans, multifamily loans a nd HEI at con solidated entities We have elected to account for most of our consolidated securitization entities as collateralized financing entities in accordance with GAAP. A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. Pursuant to this guidance, we use the fair value of the ABS issued by the CFEs (which we determined to be more observable) to determine the fair value of the loans held at these entities, whereby the net assets we consolidate in our financial statements related to these entities represent the estimated fair value of our retained interests in the CFEs. Residential loans at Redwood Estimated fair values for residential loans are determined using models that incorporate various pricing inputs, including information derived from whole loan sales and securitizations that have occurred in the market. Certain significant inputs in these models are considered unobservable and are therefore Level 3 in nature. Significant pricing inputs obtained from market whole loan transaction activity include indicative spreads to indexed TBA prices and indexed swap rates (Level 3). Significant pricing inputs obtained from market securitization activity include indicative spreads to indexed TBA prices and swap rats for senior and subordinate MBS, IO MBS discount rates, senior credit support levels, and assumed future prepayment rates (Level 3). These assets would generally decrease in value based upon an increase in the credit spread, prepayment speed, or credit support assumptions. Business purpose loans Estimated fair values for business purpose loans are determined using models that incorporate various pricing inputs, including information derived from whole loan sales and securitizations that have occurred in the market, and for most of our bridge loans, market yields are used to discount expected cash flows. Certain significant inputs in these models are considered unobservable and are therefore Level 3 in nature. Significant pricing inputs obtained from market securitization activity include indicative spreads to indexed treasury rates for senior and subordinate MBS, IO MBS discount rates, senior credit support levels, and assumed future prepayment rates (Level 3). Significant pricing inputs obtained from market whole loan transaction activity include indicative spreads to indexed treasury prices and swap rates (Level 3). These assets would generally decrease in value based upon an increase in the credit spread, prepayment speed, or credit support assumptions. Prices for most of our BPL bridge loans are determined using discounted cash flow modeling, which incorporates a primary significant unobservable input of market discount rate. Cash flows for performing loans are generally based on contractual loan terms. Delinquent loans, are generally valued at a dollar price that is informed by various market data, including the estimated fair value of the collateral securing the loan, for which we typically receive third-party appraisals (Level 3). These assets would generally decrease in value based upon an increase in the discount rate or a decrease in the value of the underlying collateral. Real estate securities Real estate securities include residential, multifamily, and other mortgage-backed securities that are generally illiquid in nature and trade infrequently. Significant inputs in the valuation analysis for these assets are predominantly Level 3 in nature, due to the lack of readily available market quotes and related inputs. For real estate securities, we utilize both market comparable pricing and discounted cash flow analysis valuation techniques. Relevant market indicators that are factored into the analysis include bid/ask spreads, the amount and timing of credit losses, interest rates, and collateral prepayment rates. Estimated fair values are based on applying the market indicators to generate discounted cash flows (Level 3). These cash flow models use significant unobservable inputs such as a discount rate, prepayment rate, default rate and loss severity. The estimated fair value of our securities would generally decrease based upon an increase in discount rate, default rates, loss severities, or a decrease in prepayment rates. Derivative assets and liabilities Our derivative instruments include swaps, swaptions, TBAs, interest rate futures, loan purchase commitments, and forward sale commitments. Fair values of derivative instruments are determined using quoted prices from active markets, when available, or from valuation models and are supported by valuations provided by dealers active in derivative markets. Fair values of TBAs and interest rate futures are generally obtained using quoted prices from active markets (Level 1). Our derivative valuation models for swaps and swaptions require a variety of inputs, including contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates, and correlations of certain inputs. Model inputs can generally be verified and model selection does not involve significant management judgment (Level 2). LPC, and IRLC fair values for residential jumbo and BPL term loans are estimated based on the estimated fair values of the underlying loans (as described in " Residential loans at Redwood " and " Business purpose loans" above). In addition, fair values for LPCs and IRLCs are estimated based on the probability that the mortgage loan will be purchased or originated (the "Pull-through rate") (Level 3). Servicer advance investments Estimated fair values for servicer advance investments are determined through internal pricing models that estimate future cash flows and utilize certain significant inputs that are considered unobservable and are therefore Level 3 in nature. Our estimations of cash flows include the combined cash flows of all of the components that comprise the servicer advance investments: existing advances, the requirement to purchase future advances, the recovery of advances, and the right to a portion of the associated mortgage servicing fee ("mortgage servicing income"). The valuation technique is based on discounted cash flows. Significant inputs used in the valuations include prepayment rate (of the loans underlying the investments), mortgage servicing income, servicer advance WAL (the weighted-average expected remaining life of servicer advances), and discount rate. These assets would generally decrease in value based upon an increase in prepayment rates, an increase in servicer advance WAL, an increase in discount rate, or a decrease in mortgage servicing income. MSRs MSRs include the rights to service jumbo residential mortgage loans. Significant inputs in the valuation analysis are predominantly Level 3, due to the nature of these instruments and the lack of readily available market quotes. Changes in the fair value of MSRs occur primarily due to the collection/realization of expected cash flows, as well as changes in valuation inputs and assumptions. Estimated fair values are based on applying the inputs to generate the net present value of estimated future MSR income (Level 3). These discounted cash flow models utilize certain significant unobservable inputs including market discount rates, assumed future prepayment rates of serviced loans, and the market cost of servicing. An increase in these unobservable inputs would generally reduce the estimated fair value of the MSRs. Excess MSRs Estimated fair values for excess MSRs are determined through internal pricing models that estimate future cash flows and utilize certain significant inputs that are considered unobservable and are therefore Level 3 in nature. The valuation technique is based on discounted cash flows. Significant unobservable inputs used in the valuations include prepayment rate (of the loans underlying the investments), the amount of excess servicing income expected to be received ("excess mortgage servicing income"), and discount rate. These assets would generally decrease in value based upon an increase in prepayment rates or discount rate, or a decrease in excess mortgage servicing income. HEI at Redwood Estimated fair values for home equity investment contracts are determined through internal pricing models that estimate future cash flows and utilize certain significant unobservable inputs such as forecasted home price appreciation, prepayment rates and discount rate, and are therefore Level 3 in nature. The valuation technique is based on discounted cash flows. An increase in discount rate or a decrease in forecasted home price appreciation combined with a decrease in prepayment rate

Residential Loans

Residential Loans	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Residential Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2022 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 780,781 $ — $ — $ — $ 780,781 Held-for-investment at fair value — 184,932 3,190,417 1,457,058 4,832,407 Total Residential Loans $ 780,781 $ 184,932 $ 3,190,417 $ 1,457,058 $ 5,613,188 December 31, 2021 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At December 31, 2022, we owned mortgage servicing rights associated with $803 million (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 December 31, 2022 and 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 994 2,196 Unpaid principal balance $ 822,063 $ 1,813,865 Fair value of loans $ 780,781 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 775,545 $ 1,838,797 Weighted average coupon 5.12 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 208 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the years ended December 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Year Ended December 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 3,704,196 $ 12,916,155 Principal balance of loans sold 3,858,647 8,244,221 Principal balance of loans transferred to HFI 687,192 2,957,694 Net market valuation (losses) gains recorded (2) (93,843) 76,144 (1) For the years ended December 31, 2022 and 2021, includes $102 million and $200 million of loans acquired through calls of three and seven seasoned Sequoia securitizations, respectively. (2) 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 purposed in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment December 31, 2022 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,304 4,624 10,882 Unpaid principal balance $ 204,404 $ 3,847,091 $ 1,719,236 Fair value of loans (2) $ 184,932 $ 3,190,417 $ 1,457,058 Weighted average coupon 4.51 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 30 10 1,211 Unpaid principal balance of loans with 90+ day delinquencies $ 6,824 $ 7,799 $ 209,397 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 11 5 427 Unpaid principal balance of loans in foreclosure $ 1,166 $ 4,654 $ 72,440 Table 6.4 – Characteristics of Residential Loans Held-for-Investment (continued) December 31, 2021 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans (2) $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.54 % 3.14 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (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. 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, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in 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 years ended December 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Year Ended December 31, 2022 Year Ended December 31, 2021 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 $ 684,491 N/A N/A $ 3,035,100 N/A Net market valuation gains (losses) recorded 12,956 (675,659) (215,687) 12,125 (66,727) (14,735) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 We originate and invest in business purpose loans, including term and bridge loans (see Note 3 for a full description of these loans). The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at December 31, 2022 and 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans December 31, 2022 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,791 $ — $ 5,282 $ — $ 364,073 Held-for-investment at fair value — 2,944,984 1,507,146 516,383 4,968,513 Total Business Purpose Loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 $ 5,332,586 December 31, 2021 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding BPL term loans at December 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at December 31, 2022 were first-lien, interest-only loans with original maturities of six At December 31, 2022, we had a $904 million commitment to fund BPL bridge loans. See Note 17 for additional information on this commitment. The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Twelve Months Ended Twelve Months Ended (In Thousands) BPL Term at Redwood BPL Bridge at Redwood BPL Term at Redwood BPL Bridge at Redwood Principal balance of loans originated $ 1,000,109 $ 1,698,227 $ 1,254,913 $ 894,908 Principal balance of loans acquired (1) 100,349 97,787 68,804 65,315 Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 Fair value of loans transferred (2) 561,218 584,233 1,116,443 358,884 Fair value of loans transferred from HFI to HFS (3) — — 92,455 N/A Mortgage banking activities income (loss) recorded (4) (91,024) 1,881 63,206 7,188 Investment fair value changes recorded (5) — (5,805) — 1,483 (1) BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) 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 year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying BPL term and bridge loans owned by these entities. For loans held at our consolidated CAFL Term 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in the CAFL Term entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the collateralized financing entity guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the years ended December 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Year Ended Year Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ (441,318) $ (435) $ (158,081) $ (1,548) . REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021. Table 7.4 – Characteristics of Business Purpose Loans December 31, 2022 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 91 1,131 1,601 1,875 Unpaid principal balance $ 389,846 $ 3,263,421 $ 1,518,427 $ 514,666 Fair value of loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 Weighted average coupon 5.98 % 5.22 % 9.61 % 9.67 % Weighted average remaining loan term (years) 10 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 291,406 N/A $ 579,666 N/A Market value of loans pledged as collateral under long-term debt facilities $ 66,567 N/A $ 897,782 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 16 49 48 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 37,072 $ 34,264 $ 7,328 Fair value of loans with 90+ day delinquencies (3) $ 536 N/A $ 29,663 $ 7,438 Number of loans in foreclosure 1 9 48 48 Unpaid principal balance of loans in foreclosure $ 536 $ 13,686 $ 34,039 $ 7,328 Fair value of loans in foreclosure (3) $ 536 N/A $ 29,438 $ 7,438 December 31, 2021 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (3) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL 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. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — 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 December 31, 2022 and 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 447,193 $ 455,168 Fair value of loans $ 424,551 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at December 31, 2022 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 years ended December 31, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Year Ended December 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (40,987) $ (11,068) (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 Loan Characteristics The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Business Purpose Loans

Business Purpose Loans	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022 and 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2022 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 780,781 $ — $ — $ — $ 780,781 Held-for-investment at fair value — 184,932 3,190,417 1,457,058 4,832,407 Total Residential Loans $ 780,781 $ 184,932 $ 3,190,417 $ 1,457,058 $ 5,613,188 December 31, 2021 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At December 31, 2022, we owned mortgage servicing rights associated with $803 million (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 December 31, 2022 and 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 994 2,196 Unpaid principal balance $ 822,063 $ 1,813,865 Fair value of loans $ 780,781 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 775,545 $ 1,838,797 Weighted average coupon 5.12 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 208 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the years ended December 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Year Ended December 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 3,704,196 $ 12,916,155 Principal balance of loans sold 3,858,647 8,244,221 Principal balance of loans transferred to HFI 687,192 2,957,694 Net market valuation (losses) gains recorded (2) (93,843) 76,144 (1) For the years ended December 31, 2022 and 2021, includes $102 million and $200 million of loans acquired through calls of three and seven seasoned Sequoia securitizations, respectively. (2) 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 purposed in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment December 31, 2022 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,304 4,624 10,882 Unpaid principal balance $ 204,404 $ 3,847,091 $ 1,719,236 Fair value of loans (2) $ 184,932 $ 3,190,417 $ 1,457,058 Weighted average coupon 4.51 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 30 10 1,211 Unpaid principal balance of loans with 90+ day delinquencies $ 6,824 $ 7,799 $ 209,397 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 11 5 427 Unpaid principal balance of loans in foreclosure $ 1,166 $ 4,654 $ 72,440 Table 6.4 – Characteristics of Residential Loans Held-for-Investment (continued) December 31, 2021 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans (2) $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.54 % 3.14 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (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. 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, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in 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 years ended December 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Year Ended December 31, 2022 Year Ended December 31, 2021 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 $ 684,491 N/A N/A $ 3,035,100 N/A Net market valuation gains (losses) recorded 12,956 (675,659) (215,687) 12,125 (66,727) (14,735) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 We originate and invest in business purpose loans, including term and bridge loans (see Note 3 for a full description of these loans). The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at December 31, 2022 and 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans December 31, 2022 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,791 $ — $ 5,282 $ — $ 364,073 Held-for-investment at fair value — 2,944,984 1,507,146 516,383 4,968,513 Total Business Purpose Loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 $ 5,332,586 December 31, 2021 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding BPL term loans at December 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at December 31, 2022 were first-lien, interest-only loans with original maturities of six At December 31, 2022, we had a $904 million commitment to fund BPL bridge loans. See Note 17 for additional information on this commitment. The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Twelve Months Ended Twelve Months Ended (In Thousands) BPL Term at Redwood BPL Bridge at Redwood BPL Term at Redwood BPL Bridge at Redwood Principal balance of loans originated $ 1,000,109 $ 1,698,227 $ 1,254,913 $ 894,908 Principal balance of loans acquired (1) 100,349 97,787 68,804 65,315 Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 Fair value of loans transferred (2) 561,218 584,233 1,116,443 358,884 Fair value of loans transferred from HFI to HFS (3) — — 92,455 N/A Mortgage banking activities income (loss) recorded (4) (91,024) 1,881 63,206 7,188 Investment fair value changes recorded (5) — (5,805) — 1,483 (1) BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) 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 year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying BPL term and bridge loans owned by these entities. For loans held at our consolidated CAFL Term 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in the CAFL Term entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the collateralized financing entity guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the years ended December 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Year Ended Year Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ (441,318) $ (435) $ (158,081) $ (1,548) . REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021. Table 7.4 – Characteristics of Business Purpose Loans December 31, 2022 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 91 1,131 1,601 1,875 Unpaid principal balance $ 389,846 $ 3,263,421 $ 1,518,427 $ 514,666 Fair value of loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 Weighted average coupon 5.98 % 5.22 % 9.61 % 9.67 % Weighted average remaining loan term (years) 10 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 291,406 N/A $ 579,666 N/A Market value of loans pledged as collateral under long-term debt facilities $ 66,567 N/A $ 897,782 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 16 49 48 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 37,072 $ 34,264 $ 7,328 Fair value of loans with 90+ day delinquencies (3) $ 536 N/A $ 29,663 $ 7,438 Number of loans in foreclosure 1 9 48 48 Unpaid principal balance of loans in foreclosure $ 536 $ 13,686 $ 34,039 $ 7,328 Fair value of loans in foreclosure (3) $ 536 N/A $ 29,438 $ 7,438 December 31, 2021 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (3) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL 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. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — 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 December 31, 2022 and 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 447,193 $ 455,168 Fair value of loans $ 424,551 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at December 31, 2022 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 years ended December 31, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Year Ended December 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (40,987) $ (11,068) (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 Loan Characteristics The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Consolidated Agency Multifamily

Consolidated Agency Multifamily Loans	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Consolidated Agency Multifamily Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2022 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 780,781 $ — $ — $ — $ 780,781 Held-for-investment at fair value — 184,932 3,190,417 1,457,058 4,832,407 Total Residential Loans $ 780,781 $ 184,932 $ 3,190,417 $ 1,457,058 $ 5,613,188 December 31, 2021 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At December 31, 2022, we owned mortgage servicing rights associated with $803 million (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 December 31, 2022 and 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 994 2,196 Unpaid principal balance $ 822,063 $ 1,813,865 Fair value of loans $ 780,781 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 775,545 $ 1,838,797 Weighted average coupon 5.12 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 208 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the years ended December 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Year Ended December 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 3,704,196 $ 12,916,155 Principal balance of loans sold 3,858,647 8,244,221 Principal balance of loans transferred to HFI 687,192 2,957,694 Net market valuation (losses) gains recorded (2) (93,843) 76,144 (1) For the years ended December 31, 2022 and 2021, includes $102 million and $200 million of loans acquired through calls of three and seven seasoned Sequoia securitizations, respectively. (2) 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 purposed in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment December 31, 2022 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,304 4,624 10,882 Unpaid principal balance $ 204,404 $ 3,847,091 $ 1,719,236 Fair value of loans (2) $ 184,932 $ 3,190,417 $ 1,457,058 Weighted average coupon 4.51 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 30 10 1,211 Unpaid principal balance of loans with 90+ day delinquencies $ 6,824 $ 7,799 $ 209,397 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 11 5 427 Unpaid principal balance of loans in foreclosure $ 1,166 $ 4,654 $ 72,440 Table 6.4 – Characteristics of Residential Loans Held-for-Investment (continued) December 31, 2021 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans (2) $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.54 % 3.14 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (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. 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, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in 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 years ended December 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Year Ended December 31, 2022 Year Ended December 31, 2021 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 $ 684,491 N/A N/A $ 3,035,100 N/A Net market valuation gains (losses) recorded 12,956 (675,659) (215,687) 12,125 (66,727) (14,735) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. Residential Loan Characteristics The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 We originate and invest in business purpose loans, including term and bridge loans (see Note 3 for a full description of these loans). The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at December 31, 2022 and 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans December 31, 2022 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,791 $ — $ 5,282 $ — $ 364,073 Held-for-investment at fair value — 2,944,984 1,507,146 516,383 4,968,513 Total Business Purpose Loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 $ 5,332,586 December 31, 2021 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding BPL term loans at December 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at December 31, 2022 were first-lien, interest-only loans with original maturities of six At December 31, 2022, we had a $904 million commitment to fund BPL bridge loans. See Note 17 for additional information on this commitment. The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Twelve Months Ended Twelve Months Ended (In Thousands) BPL Term at Redwood BPL Bridge at Redwood BPL Term at Redwood BPL Bridge at Redwood Principal balance of loans originated $ 1,000,109 $ 1,698,227 $ 1,254,913 $ 894,908 Principal balance of loans acquired (1) 100,349 97,787 68,804 65,315 Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 Fair value of loans transferred (2) 561,218 584,233 1,116,443 358,884 Fair value of loans transferred from HFI to HFS (3) — — 92,455 N/A Mortgage banking activities income (loss) recorded (4) (91,024) 1,881 63,206 7,188 Investment fair value changes recorded (5) — (5,805) — 1,483 (1) BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) 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 year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying BPL term and bridge loans owned by these entities. For loans held at our consolidated CAFL Term 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in the CAFL Term entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the collateralized financing entity guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the years ended December 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Year Ended Year Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ (441,318) $ (435) $ (158,081) $ (1,548) . REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021. Table 7.4 – Characteristics of Business Purpose Loans December 31, 2022 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 91 1,131 1,601 1,875 Unpaid principal balance $ 389,846 $ 3,263,421 $ 1,518,427 $ 514,666 Fair value of loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 Weighted average coupon 5.98 % 5.22 % 9.61 % 9.67 % Weighted average remaining loan term (years) 10 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 291,406 N/A $ 579,666 N/A Market value of loans pledged as collateral under long-term debt facilities $ 66,567 N/A $ 897,782 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 16 49 48 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 37,072 $ 34,264 $ 7,328 Fair value of loans with 90+ day delinquencies (3) $ 536 N/A $ 29,663 $ 7,438 Number of loans in foreclosure 1 9 48 48 Unpaid principal balance of loans in foreclosure $ 536 $ 13,686 $ 34,039 $ 7,328 Fair value of loans in foreclosure (3) $ 536 N/A $ 29,438 $ 7,438 December 31, 2021 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (3) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL 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. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — 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 December 31, 2022 and 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 447,193 $ 455,168 Fair value of loans $ 424,551 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at December 31, 2022 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 years ended December 31, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Year Ended December 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (40,987) $ (11,068) (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 Loan Characteristics The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 % T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Real Estate Securities

Real Estate Securities	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022 and 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2022 December 31, 2021 Trading $ 108,329 $ 170,619 Available-for-sale 132,146 206,792 Total Real Estate Securities $ 240,475 $ 377,411 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 December 31, 2022 and 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Senior Interest-only securities (1) $ 28,867 $ 21,787 Total Senior 28,867 21,787 Subordinate RPL securities 29,002 65,140 Multifamily securities 5,027 10,549 Other third-party residential securities 45,433 73,143 Total Subordinate 79,462 148,832 Total Trading Securities $ 108,329 $ 170,619 (1) Includes $26 million and $15 million of Sequoia certificated mortgage servicing rights at December 31, 2022 and 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at December 31, 2022 and 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 215,592 235,306 Total Trading Securities $ 215,592 $ 235,306 (1) Our senior trading securities are comprised of interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the years ended December 31, 2022 and 2021. Table 9.4 – Trading Securities Activity Year Ended December 31, (In Thousands) 2022 2021 Principal balance of securities acquired (1) $ — $ 50,180 Principal balance of securities sold (1) 17,716 55,561 Net market valuation gains (losses) recorded (2) (34,221) 23,583 (1) For the year ended December 31, 2021, excludes $5 million of securities bought and sold during the same quarter. (2) 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 ("AFS") securities by position and collateral type at December 31, 2022 and 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Subordinate Sequoia securities $ 74,367 $ 127,542 Multifamily securities 7,647 22,166 Other third-party residential securities 50,132 57,084 Total Subordinate 132,146 206,792 Total AFS Securities $ 132,146 $ 206,792 The following table provides the activity of available-for-sale securities during the years ended December 31, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Year Ended December 31, (In Thousands) 2022 2021 Fair value of securities acquired $ 10,000 $ 19,100 Fair value of securities sold — 4,785 Principal balance of securities called 20,267 27,875 Net unrealized (losses) gains on AFS securities (1) (64,704) 8,016 (1) Net unrealized (losses) gains on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive and thus do not expect to earn or recover as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. At December 31, 2022, we had $4 million of AFS securities with contractual maturities less than five years, $1 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 December 31, 2022 and 2021. Table 9.7 – Carrying Value of AFS Securities (In Thousands) December 31, 2022 December 31, 2021 Principal balance $ 221,933 $ 242,852 Credit reserve (28,739) (27,555) Unamortized discount, net (61,650) (76,023) Amortized cost 131,544 139,274 Gross unrealized gains 16,269 67,815 Gross unrealized losses (13,127) (297) CECL allowance (2,540) — Carrying Value $ 132,146 $ 206,792 The following table presents the changes for the years ended December 31, 2022 and 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 Year Ended December 31, 2022 Year Ended December 31, 2021 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 27,555 $ 76,023 $ 44,967 $ 95,718 Amortization of net discount — (11,153) — (23,254) Realized credit recoveries (losses), net 471 — (707) — Acquisitions — — 2,825 1,208 Sales, calls, other (842) (1,665) (1,328) (15,851) Transfers to (release of) credit reserves, net 1,555 (1,555) (18,202) 18,202 Ending Balance $ 28,739 $ 61,650 $ 27,555 $ 76,023 AFS Securities with Unrealized Losses The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at December 31, 2022 and 2021. Table 9.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Fair Unrealized Fair Value Unrealized (In Thousands) December 31, 2022 $ 72,679 $ (12,940) $ 1,414 $ (186) December 31, 2021 6,827 (251) 1,554 (46) At December 31, 2022, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 79 AFS securities, of which 38 were in an unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2021, our consolidated balance sheet included 85 AFS securities, of which four were in an unrealized loss position and one was 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 $13 million at December 31, 2022. 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 December 31, 2022, 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 December 31, 2022, our current expected credit loss ("CECL") allowance related to our AFS securities was $2.5 million. AFS securities for which an allowance is recognized have experienced, or are expected to experience, 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 changes in 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 December 31, 2022. Table 9.10 – Significant Credit Quality Indicators December 31, 2022 Subordinate Securities Default rate 0.7% Loss severity 20% The following table details the activity related to the allowance for credit losses for AFS securities held at December 31, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Year Ended Year Ended (In Thousands) December 31, 2022 December 31, 2021 Beginning balance allowance for credit losses $ — $ 388 Additions to allowance for credit losses on securities for which credit losses were not previously recorded 1,726 — Additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period 814 (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 $ 2,540 $ — 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 years ended December 31, 2022, 2021, and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2022 2021 2020 Gross realized gains - sales $ — $ 1,540 $ 8,779 Gross realized gains - calls 2,508 15,553 5 Gross realized losses - sales — — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 2,508 $ 17,093 $ 4,640

Home Equity Investments (HEI)

Home Equity Investments (HEI)	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Home Equity Investments (HEI)	Home Equity Investments (HEI) We purchase home equity investment contracts from third party originators under flow purchase agreements. 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 recording a security instrument (e.g., a deed of trust) with respect to the property . Our investments in HEIs allow us to share in both home price appreciation and depreciation of the associated property. The following table presents our home equity investments at December 31, 2022 and December 31, 2021. Table 10.1 – Home Equity Investments (In Thousands) December 31, 2022 December 31, 2021 HEIs at Redwood $ 270,835 $ 33,187 HEIs held at consolidated HEI securitization entity 132,627 159,553 Total Home Equity Investments $ 403,462 $ 192,740 At December 31, 2022, we had flow purchase agreements with HEI originators with $69 million of cumulative purchase commitments outstanding. As of December 31, 2022, we had the option to terminate certain HEI purchase commitments upon 90 days prior notice and reduce our HEI purchase commitments. See Note 17 for additional information on these commitments. We consolidate the HEI securitization entity in accordance with GAAP and have elected to account for it under the CFE election. As such, market valuation changes for the securitized HEI are based on the estimated fair value of the associated ABS issued by the entity, including the securities we own. The following table provides the activity of HEIs during the years ended December 31, 2022 and 2021. Table 10.2 – Activity of HEI Twelve Months Ended Twelve Months Ended (In Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Fair value of HEI purchased $ 248,218 $ — $ 32,650 $ — Fair value of HEI transferred (1) — — (47,209) 47,209 Net market valuation gains (losses) recorded (2) (202) 5,875 13,207 567 (1) Includes HEI transferred into our HEI securitization. (2) We account for HEI at Redwood under the fair value option and record net market valuation changes through Investment fair value changes, net on our Consolidated statements of income (loss). We account for Securitized HEI under the CFE election and net market valuation gains (losses) for these investments are recorded through Investment fair value changes, net on our Consolidated statements of income (loss). The following tables summarizes the characteristics of HEIs at December 31, 2022 and 2021. Table 10.3 – HEI Characteristics December 31, 2022 December 31, 2021 (Dollars in Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Number of HEI contracts 2,599 1,007 333 1,318 Average initial amount of contract $ 101 $ 94 $ 95 $ 91 The following tables present the geographic concentration of HEI recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 10.4 – Geographic Concentration of HEI December 31, 2022 Geographic Concentration HEI at Redwood Securitized HEI California 44 % 59 % Florida 14 % 4 % Arizona 7 % — % Washington 6 % 6 % Colorado 5 % 4 % New York 4 % 11 % Other states (none greater than 5%) 20 % 16 % Total 100 % 100 % December 31, 2021 Geographic Concentration HEI at Redwood Securitized HEI California 42 % 58 % Florida 9 % 4 % Arizona 10 % — % Washington 12 % 6 % Colorado 3 % 5 % New York 5 % 10 % Other states (none greater than 5%) 19 % 17 % Total 100 % 100 %

Other Investments

Other Investments	12 Months Ended
	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at December 31, 2022 and 2021 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) December 31, 2022 December 31, 2021 Servicer advance investments $ 269,259 $ 350,923 Strategic investments 56,518 35,702 Excess MSRs 39,035 44,231 Mortgage servicing rights 25,421 12,438 Other 705 5,935 Total Other Investments $ 390,938 $ 449,229 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 portfolios of legacy residential mortgage-backed securitizations serviced by the co-investor. See Note 4 for additional information regarding the transaction and Note 17 for additional information regarding our funding obligations for this investment. Our servicer advance investments (owned by the consolidated SA Buyers) are comprised of outstanding servicer advance receivables, the requirement to purchase all future servicer advances made with respect to specified pools of residential mortgage loans, and a portion of the mortgage servicing fees from the underlying loan pools. A portion of the remaining mortgage servicing fees from the underlying loan pools are paid directly to the third-party servicer for the performance of servicing duties and a portion is paid to excess MSRs that we own as a separate investment. Servicer advances are non-interest bearing and are a customary feature of residential mortgage securitization transactions. Servicer advances are generally reimbursable cash payments made by a servicer when the borrower fails to make scheduled payments due on a residential mortgage loan or to support the value of the collateral property. Servicer advances typically fall into three categories: • Principal and Interest Advances: cash payments made by the servicer to cover scheduled principal and interest payments on a residential mortgage loan that have not been paid on a timely basis by the borrower. • Escrow Advances (Taxes and Insurance Advances): Cash payments made by the servicer to third parties on behalf of the borrower for real estate taxes and insurance premiums on the property that have not been paid on a timely basis by the borrower. • Corporate Advances: Cash payments made by the servicer to third parties for the reimbursable costs and expenses incurred in connection with the foreclosure, preservation and sale of the mortgaged property, including attorneys’ and other professional fees. Servicer advances are generally permitted to be repaid from amounts received with respect to the related residential mortgage loan, including payments from the borrower or amounts received from the liquidation of the property securing the loan. Residential mortgage servicing agreements generally require a servicer to make advances in respect of serviced residential mortgage loans unless the servicer determines in good faith that the advance would not be ultimately recoverable from the proceeds of the related residential mortgage loan or the mortgaged property. At December 31, 2022, our servicer advance investments had a carrying value of $269 million and were associated with specified pools of residential mortgage loans with an unpaid principal balance of $11.34 billion. The outstanding servicer advance receivables associated with this investment were $240 million at December 31, 2022, which were financed with short-term non-recourse securitization debt (see Note 14 for additional detail on this debt). The servicer advance receivables were comprised of the following types of advances at December 31, 2022 and 2021: Table 11.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2022 December 31, 2021 Principal and interest advances $ 81,447 $ 94,148 Escrow advances (taxes and insurance advances) 123,541 172,847 Corporate advances 35,377 43,958 Total Servicer Advance Receivables $ 240,365 $ 310,953 We account for our servicer advance investments at fair value and during the years ended December 31, 2022, 2021, and 2020, we recorded $20 million, $12 million and $11 million, respectively, of Other interest income associated with these investments, and recorded net market valuation losses of $11 million, $1 million, and $9 million, respectively, through Investment fair value changes, net in our consolidated statements of income (loss). Strategic Investments Strategic investments represent investments we made in companies through our RWT Horizons venture investment strategy and separately at a corporate level. At December 31, 2022, we had made a total of 29 investments in companies through RWT Horizons with a total carrying value of $25 million, as well as five corporate-level investments. See Note 3 for additional detail on how we account for our strategic investments. During the years ended December 31, 2022 and 2021, we recognized net mark-to-market valuation gains of $13 million and zero, respectively, on our strategic investments, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss). During the years ended December 31, 2022 and 2021, we recorded losses of $0.9 million and gains of $0.8 million, respectively, in Other income, net on our Consolidated statements of income (loss), from 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 years ended December 31, 2022, 2021, and 2020 we recognized $16 million, $13 million and $12 million of Other interest income, respectively, and recorded net market valuation losses of $5 million, $8 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 year ended December 31, 2022, we retained $5 million of MSRs from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries. At December 31, 2022 and 2021, our MSRs had a fair value of $25 million and $12 million, respectively, and were associated with loans with an aggregate principal balance of $2.19 billion and $2.12 billion, respectively. During the years ended December 31, 2022, 2021, and 2020, including net market valuation gains and losses on our MSRs and related risk management derivatives, we recorded a net gain of $15 million, a net gain of $2 million, and a net loss of $10 million, respectively, through Other income on our consolidated statements of income (loss) related to our MSRs.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2022 and 2021. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 14,625 $ 285,000 $ 611 $ 161,500 TBAs 1,893 220,000 2,880 2,440,000 Interest rate futures 3,976 350,600 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 336 8,166 4,633 971,631 Total Assets $ 20,830 $ 863,766 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ — $ — $ (1,251) $ 283,100 TBAs (16,784) 845,000 (658) 870,000 Interest rate futures (57) 60,000 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (14) 3,532 (503) 404,190 Total Liabilities $ (16,855) $ 908,532 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 3,975 $ 1,772,298 $ 23,150 $ 6,861,921 Risk Management Derivatives To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. At December 31, 2022, we were party to swaps and swaptions with an aggregate notional amount of $285 million, TBA agreements with an aggregate notional amount of $1.07 billion, and interest rate futures contracts with an aggregate notional amount of $411 million. At December 31, 2021, we were party to swaps and swaptions with an aggregate notional amount of $2.10 billion, futures with an aggregate notional amount of $72 million and TBA agreements with an aggregate notional amount of $3.31 billion. For the years ended December 31, 2022, 2021, and 2020, risk management derivatives had net market valuation gains of $184 million, net market valuation gains of $41 million, and net market valuation losses of $93 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 Loan purchase commitments ("LPCs") and interest rate lock commitments ("IRLCs") that qualify as derivatives are recorded at their estimated fair values. For the years ended December 31, 2022, 2021, and 2020, LPCs and IRLCs had a net market valuation losses of $55 million, a net market valuation gain of $11 million, and a net market valuation gain of $57 million, respectively, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). Derivatives Designated as Cash Flow Hedges For interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive income was $72 million and $76 million at December 31, 2022 and 2021, respectively. We are amortizing this loss into interest expense over the remaining term of our trust preferred securities and subordinated notes. As of December 31, 2022, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months. For the years ended December 31, 2022, 2021, and 2020, changes in the values of designated cash flow hedges were zero, 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 years ended December 31, 2022, 2021, and 2020. Table 12.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2022 2021 2020 Net interest expense on cash flows hedges $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (4,127) (4,127) (3,188) Total Interest Expense $ (4,127) $ (4,127) $ (4,048) Derivative Counterparty Credit Risk We incur credit risk to the extent that counterparties to our derivative financial instruments do not perform their obligations under specified contractual agreements. If a derivative counterparty does not perform, we may not receive the proceeds to which we may be entitled under these agreements. Each of our derivative counterparties that is not a clearinghouse must maintain compliance with International Swaps and Derivatives Association (“ISDA”) agreements or other similar agreements (or receive a waiver of non-compliance after a specific assessment) in order to conduct derivative transactions with us. Additionally, we review non-clearinghouse derivative counterparty credit standings, and in the case of a deterioration of creditworthiness, appropriate remedial action is taken. To further mitigate counterparty risk, we exit derivatives contracts with counterparties that (i) do not maintain compliance with (or obtain a waiver from) the terms of their ISDA or other agreements with us; or (ii) do not meet internally established guidelines regarding creditworthiness. Our ISDA and similar agreements currently require full bilateral collateralization of unrealized loss exposures with our derivative counterparties. Through a margin posting process, our positions are revalued with counterparties each business day and cash margin is generally transferred to either us or our derivative counterparties as collateral based upon the directional changes in fair value of the positions. We also attempt to transact with several different counterparties in order to reduce our specific counterparty exposure. With respect to certain of our derivatives, clearing and settlement is through one or more clearinghouses, which may be substituted as a counterparty. Clearing and settlement of derivative transactions through a clearinghouse is also intended to reduce specific counterparty exposure. We consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At December 31, 2022, we assessed this risk as remote and did not record a specific valuation adjustment. At December 31, 2022, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at December 31, 2022 and 2021 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) December 31, 2022 December 31, 2021 Accrued interest receivable $ 60,893 $ 47,515 Deferred tax asset 41,931 20,867 Investment receivable 36,623 82,781 Operating lease right-of-use assets 16,177 18,772 Margin receivable 13,802 7,269 Fixed assets and leasehold improvements (1) 12,616 9,019 REO 6,455 36,126 Income tax receivables 3,399 22 Other 19,346 8,746 Total Other Assets $ 211,240 $ 231,117 (1) Fixed assets and leasehold improvements had a basis of $21 million and accumulated depreciation of $8 million at December 31, 2022. Accrued expenses and other liabilities at December 31, 2022 and 2021 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2022 December 31, 2021 Accrued interest payable $ 46,612 $ 39,297 Accrued compensation 30,929 74,636 Payable to non-controlling interests 44,859 42,670 Operating lease liabilities 18,563 20,960 Loan and MSR repurchase reserve 7,051 9,306 Guarantee obligations 6,344 7,459 Margin payable 5,944 24,368 Accrued operating expenses 5,740 4,377 Bridge loan holdbacks 3,301 3,109 Current accounts payable 4,234 8,273 Other 6,627 11,333 Total Accrued Expenses and Other Liabilities $ 180,203 $ 245,788 Investment Receivable Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from business purpose loans and fees receivable from servicer advance investments. Margin Receivable and Payable Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. Through December 31, 2022, we had met all margin calls due. Operating Lease Right-of-Use Assets and Operating Lease Liabilities Operating lease liabilities are equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for our deferred rent liabilities. These balances are reduced as lease payments are made. See Note 17 for additional information on leases. REO The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the years ended December 31, 2022 and 2021. Table 13.3 – REO Activity Year Ended December 31, 2022 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 Transfers to REO 3,974 544 3,976 — 8,494 Liquidations (1) (15,060) (505) (3,139) (20,969) (39,673) Changes in fair value, net 1,030 443 34 — 1,507 Balance at End of Period $ 3,012 $ 544 $ 2,899 $ — $ 6,455 Year Ended December 31, 2021 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 15,424 217 3,268 21,129 40,038 Liquidations (1) (7,515) (956) (2,137) (2,034) (12,642) Changes in fair value, net 559 162 251 (655) 317 Balance at End of Period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 (1) For the years ended December 31, 2022 and 2021, REO liquidations resulted in $2 million and $0.3 million of realized gains, respectively, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at December 31, 2022 and 2021. Table 13.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total At December 31, 2022 2 2 24 — 28 At December 31, 2021 5 2 24 3 34 Legal and Repurchase Reserves See Note 17 for additional information on the legal and repurchase reserves. Payable to Non-Controlling Interests In 2018, Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 4 and Note 11 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities and at December 31, 2022, the carrying value of their interests was $23 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the years ended December 31, 2022, 2021, and 2020 we allocated $2 million of income, $2 million of income, and $0.2 million of losses, respectively, to the co-investors, which were recorded in Other expenses on our consolidated statements of income (loss). In 2021, Redwood and a third-party investor co-sponsored the transfer and securitization of HEIs through the HEI securitization entity and other third-party investors retained subordinate securities issued by the securitization entity alongside Redwood. See Note 10

Short-Term Debt

Short-Term Debt	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2022 and 2021. Table 14.1 – Short-Term Debt December 31, 2022 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity (2) Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 703,406 $ 2,550,000 6.16 % 3/2023 - 12/2023 267 Business purpose loan warehouse 4 680,100 1,650,000 6.93 % 3/2023 - 9/2023 179 Real estate securities repo 7 124,909 — 5.22 % 1/2023 - 3/2023 27 HEI warehouse 1 111,681 150,000 8.54 % 11/2023 306 Total Short-Term Debt Facilities 19 1,620,096 Servicer advance financing 1 206,510 290,000 6.67 % 11/2023 305 Promissory notes N/A 27,058 — 6.64 % N/A N/A Convertible notes, net N/A 176,015 — 4.75 % 8/2023 227 Total Short-Term Debt $ 2,029,679 December 31, 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 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Convertible notes, net N/A — Total Short-Term Debt $ 2,177,362 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR at December 31, 2022 or 1- or 3-month LIBOR at December 31, 2021 . (2) Promissory notes payable on demand to lender with 90-day notice. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt facilities at December 31, 2022 and 2021. Table 14.2 – Collateral for Short-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 775,545 $ 1,838,797 Business purpose loans 871,072 167,687 HEI 191,278 — Real estate securities On balance sheet 72,133 5,823 Sequoia securitizations (1) 74,170 61,525 Freddie Mac K-Series securitization (1) 31,767 31,657 Total real estate securities owned 178,070 99,005 Restricted cash and other assets 1,097 1,962 Total Collateral for Short-Term Debt Facilities 2,017,062 2,107,451 Cash 12,713 6,480 Restricted cash — 25,420 Servicer advances 269,259 310,953 Total Collateral for Servicer Advance Financing 281,972 342,853 Total Collateral for Short-Term Debt $ 2,299,034 $ 2,450,304 (1) Represents securities we retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. For the years ended December 31, 2022 and 2021, the average balances of our short-term debt facilities were $1.65 billion and $1.67 billion, respectively. At December 31, 2022 and 2021, accrued interest payable on our short-term debt facilities was $7 million and $2 million, respectively. Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At December 31, 2022, the accrued interest payable balance on this financing was $0.5 million and the unamortized capitalized commitment costs were $1 million. In connection with our acquisition of Riverbend, we assumed $43 million of promissory notes which are payable on demand with 90-days' prior notice from the lender or which may be repaid by us with 90-days' prior notice. These unsecured, non-marginable, recourse notes were issued in three separate series with fixed interest rates between 6% and 8%. During the year ended December 31, 2022, we repaid $16 million of principal of these notes. We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $1 million at December 31, 2022. At both December 31, 2022 and 2021, we had no outstanding borrowings on this facility. During the year ended December 31, 2022, business purpose loan warehouse facilities with a borrowing limits of $900 million, were reclassified to short-term debt from long-term debt as the maturity of these facilities became less than one year. During the year ended December 31, 2022, $199 million principal amount of 4.75% convertible debt and $1 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt as the maturity of the notes was less than one year as of August 2022. During the fourth quarter of 2022, we repurchased $22 million of convertible debt and recorded a $0.4 million dollar gain on extinguishment. 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 December 31, 2022. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 186,287 $ 517,120 $ 703,407 Business purpose loans — 267,588 412,512 680,100 Real estate securities 89,216 35,693 — 124,909 HEI warehouse — — 111,681 111,681 Total Secured Short-Term Debt 89,216 489,567 1,041,313 1,620,096 Servicer advance financing — — 206,510 206,510 Promissory notes — 27,058 — 27,058 Convertible notes, net — — 176,015 176,015 Total Short-Term Debt $ 89,216 $ 516,625 $ 1,423,838 $ 2,029,679

Asset-Backed Securities Issued

Asset-Backed Securities Issued	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022 and 2021 along with other selected information, are summarized in the following table. Table 15.1 – Asset-Backed Securities Issued December 31, 2022 (Dollars in Thousands) Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total Certificates with principal balance $ 200,047 $ 3,595,715 $ 3,322,250 $ 1,306,652 $ 410,725 $ 108,962 $ 8,944,351 Interest-only certificates 180 57,871 124,928 15,328 7,379 — 205,686 Market valuation adjustments (16,036) (682,477) (331,371) (99,830) (25,319) (8,252) (1,163,285) ABS Issued, Net $ 184,191 $ 2,971,109 $ 3,115,807 $ 1,222,150 $ 392,785 $ 100,710 $ 7,986,752 Range of weighted average interest rates, by series (3) 2.69% to 5.19% 2.57% to 6.13% 2.34% to 5.92% 3.50% to 4.75% 3.41 % 3.78 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2032 2028-2059 2025 2052 Number of series 20 17 19 3 1 1 December 31, 2021 (Dollars in Thousands) Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total Certificates with principal balance $ 259,505 $ 3,353,073 $ 3,264,766 $ 1,535,638 $ 418,700 $ 138,792 $ 8,970,474 Interest-only certificates 619 32,749 193,725 11,714 10,184 — 248,991 Market valuation adjustments (32,243) (2,774) 16,407 41,111 12,973 (1,382) 34,092 ABS Issued, Net $ 227,881 $ 3,383,048 $ 3,474,898 $ 1,588,463 $ 441,857 $ 137,410 $ 9,253,557 Range of weighted average interest rates, by series (3) 0.23% to 1.44% 2.40% to 5.03% 2.64% to 5.24% 3.50% to 4.75% 3.41% 3.31 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 16 16 3 1 1 (1) Includes $485 million and $270 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at December 31, 2022 and December 31, 2021, respectively. (2) Includes $86 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at December 31, 2022 and December 31, 2021, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and HEI securitization entities are subject to early redemption and interest rate step-ups as described below. During the second quarter of 2022, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest BPL bridge loans (presented within CAFL in Table 15.1 above), which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $215 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 December 31, 2022, the principal balance of the ABS issued was $215 million, and the unamortized debt discount and deferred issuance costs were $6 million in total, for a net carrying value of $209 million. The weighted average stated coupon of the ABS issued was 4.32% at issuance. The ABS issued by the CAFL bridge entity are subject to an optional redemption in May 2024, and beginning in June 2025, the interest rate on the ABS issued increases by 2% through final maturity in May 2029. The ABS issued by this securitization were collateralized by $232 million of BPL bridge loans and $18 million of restricted cash and other assets at December 31, 2022. The securitization is structured with $250 million of total funding capacity and a feature to allow reinvestment of loan payoffs for the first 24 months of the transaction (through May 2024), unless an amortization event occurs prior to the expiration of the 24-month reinvestment period. Amortization trigger events include, among other events, delinquency rates or default rates exceeding specified thresholds for three consecutive periods, or the effective advance rate exceeding a specified threshold. During the third quarter of 2021, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest BPL bridge loans (presented within CAFL in Table 15.1 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 December 31, 2022, the principal balance of the ABS issued was $270 million, and the unamortized debt discount and deferred issuance costs were $1 million, for a net carrying value of $269 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 $284 million of BPL bridge loans, $11 million of other assets and $16 million of restricted cash at December 31, 2022. 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), unless an amortization event occurs prior to the expiration of the 30-month reinvestment period. Amortization trigger events include, among other events, delinquency rates or default rates exceeding specified thresholds for three consecutive periods, or the effective advance rate exceeding a specified threshold. During the third quarter of 2021, we consolidated the assets and liabilities of the HEI securitization 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. The ABS issued by the HEI securitization 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 December 31, 2022, the principle balance of the ABS issued was $86 million and deferred issuance costs totaled $1 million, for a net carrying value of $85 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 are subject to an optional redemption through July 2023, at which time, if the redemption right has not been exercised, 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 the stated maturity. At December 31, 2022, 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 December 31, 2022 and 2021. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2022 December 31, 2021 Legacy Sequoia $ 282 $ 99 Sequoia 8,880 8,452 CAFL 10,918 11,030 Freddie Mac SLST (1) 3,561 4,630 Freddie Mac K-Series 1,167 1,190 Total Accrued Interest Payable on ABS Issued $ 24,808 $ 25,401 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022 and 2021. Table 16.1 – Long-Term Debt December 31, 2022 (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 Facility A $ 130,408 $ — $ 130,408 N/A 5.71 % 9/2024 Facility B 101,706 (50) 101,656 N/A 4.21 % 2/2025 Facility C 68,995 (125) 68,870 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 404,622 (667) 403,955 $ 750,000 SOFR + 2.87% N/A Facility E 308,933 (838) 308,095 335,000 SOFR + 3.25% 12/2025 Recourse BPL Financing Facility F 64,689 (473) 64,216 500,000 SOFR + 2.25%-2.50% 9/2024 Total Long-Term Debt Facilities 1,079,353 (2,153) 1,077,200 Convertible notes 5.625% convertible senior notes 150,200 (1,282) 148,918 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 162,092 (2,410) 159,682 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (6,142) 208,858 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (733) 138,767 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,746,145 $ (12,720) $ 1,733,425 Table 16.1 – Long-Term Debt (continued) December 31, 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 Facility A $ 144,385 $ (313) $ 144,072 N/A 4.21 % 9/2024 Facility B 102,351 (353) 101,998 N/A 4.21 % 2/2025 Facility C 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 307,215 (507) 306,708 400,000 L + 2.75% N/A Recourse BPL Financing Facility G 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility H 110,148 — 110,148 450,000 L + 3.35% 6/2023 Total Long-Term Debt Facilities 990,155 (1,672) 988,483 Convertible notes 4.75% convertible senior notes 198,629 (1,836) 196,793 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,072) 148,128 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,384) 168,708 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (779) 138,721 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,650,576 $ (9,743) $ 1,640,833 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or SOFR plus an applicable spread. The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at December 31, 2022 and 2021. Table 16.2 – Collateral for Long-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Collateral Type BPL bridge loans $ 897,782 $ 554,597 BPL term loans 66,567 244,703 Real estate securities Sequoia securitizations (1) 178,439 247,227 CAFL securitizations (1) 237,068 260,405 Total Collateral for Long-Term Debt $ 1,379,856 $ 1,306,932 (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 December 31, 2022 and 2021. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Long-term debt facilities $ 3,364 $ 815 Convertible notes 4.75% convertible senior notes — 3,564 5.625% convertible senior notes 3,896 3,896 5.75% exchangeable senior notes 2,332 2,474 7.75% convertible senior notes 741 — Trust preferred securities and subordinated notes 1,633 581 Total Accrued Interest Payable on Long-Term Debt $ 11,966 $ 11,330 Recourse Subordinate Securities Financing Facilities In 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable (i.e., not subject to margin calls based on the market value of the underlying collateral) recourse debt financing of certain Sequoia securities as well as securities retained from our consolidated Sequoia securitizations (Facility A in Table 16.1 above). The financing is fully and unconditionally guaranteed by Redwood, and had an interest rate of approximately 4.21% through September 2022, which increased to 5.71% from October 2022 through September 2023, and will increase to 7.21% from October 2023 through September 2024. The financing facility has a final maturity in September 2024. In 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations (Facility B in Table 16.1 above). The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through February 2023, increasing to 5.71% from March 2023 through February 2024, and to 7.21% from March 2024 through February 2025. The financing facility may be terminated, at our option, beginning in February 2023, and has a final maturity in February 2025. 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 (Facility C in Table 16.1 above). The financing is guaranteed by Redwood, with an interest rate of approximately 4.75% through June 2024, increasing to 6.25% from July 2024 through June 2025, and to 7.75% from July 2025 to June 2026. The financing facility may be terminated, at our option, beginning in June 2023, and has a final maturity in June 2026. Non-Recourse Business Purpose Loan Financing Facilities During the fourth quarter of 2022, we entered into a repurchase agreement providing non-marginable, non-recourse financing primarily for BPL bridge loans (Facility E in table 16.1 above). During the first quarter of 2022, we amended facility D (see Table 16.1 above) to increase the borrowing limit from $400 million to $600 million. During the third quarter of 2022, we amended facility D to increase the borrowing limit from $600 million to $750 million. Recourse Business Purpose Loan Financing Facilities During the third quarter of 2022, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable financing for BPL term and BPL bridge loans (Facility F in Table 16.1 above). During the third quarter of 2022, Facility G was reclassified to short-term debt as the maturity of this facility was less than one year. During the second quarter of 2022, Facility H was reclassified to short-term debt as the maturity of this facility was less than one year. Convertible Notes In the second quarter of 2022, we issued $215 million principal amount of 7.75% convertible senior notes due 2027. These notes require semi-annual interest payments at a fixed annual coupon rate of 7.75% until maturity or conversion, which will be no later than June 15, 2027. After deducting the underwriting discount and offering costs, we received $208 million of net proceeds. Including amortization of deferred debt issuance costs, the effective interest expense yield on these notes was approximately 8.50% per annum. We may elect to settle conversions either entirely in cash or in a combination of cash and shares of common stock. Upon conversion, the conversion value will be paid in cash up to at least the principal amount of the notes being converted. The initial conversion rate of the notes is 95.6823 common shares per $1,000 principal amount of notes (equivalent to a conversion price of $10.45 per common share). In September 2019, RWT Holdings, Inc., a wholly-owned subsidiary of Redwood Trust, Inc., issued $201 million principal amount of 5.75% exchangeable senior notes due 2025. After deducting the underwriting discount and offering costs, we received $195 million of net proceeds. Including amortization of deferred debt issuance costs, the weighted average interest expense yield on these exchangeable notes is approximately 6.3% per annum. At December 31, 2022, these notes were exchangeable at the option of the holder at an exchange rate of 55.2644 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $18.09 per common share). Upon exchange of these notes by a holder, the holder will receive shares of our common stock. During the fourth quarter of 2022, we repurchased $10 million par value of these notes at a discount and recorded a gain on extinguishment of $2 million in Realized gains, net on our consolidated statements of income (loss). During the second quarter of 2020, we repurchased $29 million par value of these notes at a discount and recorded a gain on extinguishment of $6 million in Realized gains, net on our consolidated statements of income (loss). In June 2018, we issued $200 million principal amount of 5.625% convertible senior notes due 2024 at an issuance price of 99.5%. These convertible notes require semi-annual interest payments at a fixed coupon rate of 5.625% until maturity or conversion, which will be no later than July 15, 2024. After deducting the issuance discount, the underwriting discount and offering costs, we received $194 million of net proceeds. Including amortization of deferred debt issuance costs and the debt discount, the weighted average interest expense yield on these convertible notes is approximately 6.2% per annum. These notes are convertible at the option of the holder at a conversion rate of 54.8317 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.24 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. During the second quarter of 2020, we repurchased $50 million par value of these notes at a discount and recorded a gain on extinguishment of $9 million in Realized gains, net on our consolidated statements of income (loss). In August 2017, we issued $245 million principal amount of 4.75% convertible senior notes due 2023. After deducting the underwriting discount and offering costs, we received $238 million of net proceeds. Including amortization of deferred debt issuance costs, the weighted average interest expense yield on these convertible notes is approximately 5.3% per annum. At December 31, 2022, these notes were convertible at the option of the holder at a conversion rate of 54.4764 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.36 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. During the fourth quarter of 2022, we repurchased $22 million of convertible debt and recorded a $0.4 million dollar gain on extinguishment. During the second quarter of 2020, we repurchased $46 million par value of these notes at a discount and recorded a gain on extinguishment of $10 million in Realized gains, net on our consolidated statements of income (loss). During the third quarter of 2022, $199 million principal amount of 4.75% convertible debt and $1 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt as the maturity of the notes was less than one year as of August 2022. Trust Preferred Securities and Subordinated Notes At December 31, 2022, we had trust preferred securities and subordinated notes outstanding of $100 million and $40 million, respectively. This debt requires quarterly interest payments at a floating rate equal to three-month LIBOR plus 2.25% until the notes are redeemed. The $100 million trust preferred securities will be redeemed no later than January 30, 2037, and the $40 million subordinated notes will be redeemed no later than July 30, 2037. Under the terms of this debt, we covenant, among other things, to use our best efforts to continue to qualify as a REIT. If an event of default were to occur in respect of this debt, we would generally be restricted under its terms (subject to certain exceptions) from making dividend distributions to stockholders, from repurchasing common stock or repurchasing or redeeming any other then-outstanding equity securities, and from making any other payments in respect of any equity interests in us or in respect of any then-outstanding debt that is pari passu or subordinate to this debt.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At December 31, 2022, we were obligated under 10 non-cancelable operating leases with expiration dates through 2031 for $21 million of cumulative lease payments. Our operating lease expense was $5 million, $4 million, and $4 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table presents our future lease commitments at December 31, 2022. Table 17.1 – Future Lease Commitments by Year (In Thousands) December 31, 2022 2023 $ 4,956 2024 4,601 2025 3,580 2026 3,420 2027 2,563 2028 and thereafter 1,991 Total Lease Commitments 21,111 Less: Imputed interest (2,548) Operating Lease Liabilities $ 18,563 Leasehold improvements for our offices are amortized into expense over the lease term. There were $3 million of unamortized leasehold improvements at December 31, 2022. For each of the years ended December 31, 2022, 2021, and 2020, we recognized $0.5 million of leasehold amortization expense. During the year ended December 31, 2022, we did not enter into any new office leases. During the third quarter of 2022, we assumed three operating office leases as a result of our acquisition of Riverbend on July 1, 2022. At December 31, 2022, our operating lease liabilities were $19 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 lease commencement date. At December 31, 2022, the weighted-average remaining lease term and weighted-average discount rate for our leases was 5 years and 5.2%, respectively. Commitment to Fund BPL Bridge Loans As of December 31, 2022, we had commitments to fund up to $904 million of additional advances on existing BPL 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 December 31, 2022 and 2021, we carried a $2 million and $1 million contingent liability, respectively, related to these commitments to fund construction advances. During the years ended December 31, 2022 and 2021, we recorded a net market valuation loss of $0.5 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). Commitment to Fund Partnerships In 2018, we invested in two partnerships created to acquire and manage certain mortgage servicing related assets. See Note 11 for additional detail on these investments. In connection with these investments, 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 At December 31, 2022, we had outstanding flow purchase agreements with multiple third parties, with aggregate purchase commitments of $69 million outstanding. These purchase agreements specify monthly minimum and maximum amounts of HEIs subject to such purchase commitments. As of December 31, 2022, we had the option to terminate certain HEI purchase commitments upon 90 days prior notice and reduce our HEI purchase commitments. Se e Note 10 for additional detail on these investments. Commitments to Fund Strategic Investments In the first quarter of 2022, we entered into a $25 million commitment to an investment fund with the mission of providing quality workforce hou sing opportunities in several California urban communities, including the San Francisco Bay Area. At December 31, 2022, we had funded $15 million of this commitment. This investment is included in Other investments on our consolidated balance sheets. In 2021, we entered into a commitment to fund a $5 million RWT Horizons investment. At December 31, 2022, we had funded $1 million of this commitment. This investment is included in Other investments on our consolidated balance sheets. Riverbend Contingent Consideration As part of the consideration for our acquisition of Riverbend, we may make earnout payments payable in cash, based on generating specified revenues over a threshold amount during the two-year period ending July 1, 2024, up to a maximum potential amount payable of $25.3 million. These contingent earnout payments are classified as a contingent consideration liability on our consolidated balance sheets and carried at fair value. At December 31, 2022, our estimated fair value of this contingent liability was zero. Loss Contingencies — Risk-Sharing During 2015 and 2016, we sold conforming loans to the Agencies with an original unpaid principal balance of $3.19 billion, subject to our risk-sharing arrangements with the Agencies. At December 31, 2022, 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 December 31, 2022, we had incurred less than $100 thousand of cumulative losses under these arrangements. For the years ended December 31, 2022, 2021, and 2020, other income related to these arrangements was $1 million, $3 million and $4 million, respectively, and was included in Other income on our consolidated statements of income (loss). For the years ended December 31, 2022, 2021, and 2020, we recorded net market valuation losses related to these arrangements of $0.1 million, $0.1 million, and $1 million, respectively, through Investment fair value changes, net, on our consolidated statements of income (loss). All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at December 31, 2022, the loans had an unpaid principal balance of $439 million, a weighted average FICO score of 760 (at origination) and LTV ratio of 74% (at origination). At December 31, 2022, $8 million of the loans were 90 or more days delinquent, of which five of these loans with an unpaid principal balance of $0.9 million were in foreclosure. At December 31, 2022, the carrying value of our guarantee obligation was $6 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 December 31, 2022 and 2021, assets of such SPEs totaled $30 million and $34 million, respectively, and liabilities of such SPEs totaled $6 million and $7 million, respectively. Loss Contingencies — Repurchase Reserves We maintain a repurchase reserve for potential obligations arising from representation and warranty violations related to residential and business purpose loans we have sold to securitization trusts or third parties and for conforming residential loans associated with MSRs that we have purchased from third parties. We do not originate residential loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. At December 31, 2022 and 2021, our repurchase reserve associated with our residential loans and MSRs was $6 million and $9 million, respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. We received 14 and four repurchase requests during the years ended December 31, 2022 and 2021, respectively. During the years ended December 31, 2022, 2021, and 2020, we repurchased one loan, two loans, and one loan, respectively. During the years ended December 31, 2022, 2021, and 2020, we recorded a net reversal of repurchase provision of $3 million, a repurchase provision expense of $1 million, and a repurchase provision expense of $4 million, respectively, that were recorded in Mortgage banking activities, net and Other income on our consolidated statements of income (loss) and had charge-offs of $43 thousand, $0.2 million, and $0.1 million, respectively. At December 31, 2022 and 2021, our repurchase reserve associated with our business purpose loans was $1 million and zero, respectively. We received eight and zero repurchase requests for business purpose loans during the years ended December, 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, we did not repurchase any business purpose loans. During the years ended December 31, 2022 and 2021, we a recorded repurchase provision expense of $1 million and zero, respectively, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss) and had no charge-offs in either year. Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the FHLB-Seattle or Schwab litigation matters referenced in Note 16 within the financial statements included in Redwood’s Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Loss Contingencies - Litigation." At December 31, 2022, the aggregate amount of loss contingency reserves established in respect of the FHLB-Seattle and Schwab litigation matters referenced in our Annual Report on Form 10-K for the year ended December 31, 2020 was $2 million. From time to time and in the ordinary course of business, we may submit or receive demand letters to or from counterparties relating to breaches of representations and warranties, be named in lawsuits brought by mortgage borrowers relating to foreclosure proceedings initiated by the servicers of the related mortgage loans or seeking to establish that their mortgage notes and/or mortgages are unenforceable as a matter of law due to defects in the transfer and assignment of those notes and mortgages, or be named in lawsuits brought by mortgage borrowers seeking remedies against the originator of the mortgage for fraud or defects in the originator's origination process, including defects in the disclosure of mortgage terms at the time of origination (in these cases we may be named in connection with the origination of the loan, in the case of business purpose loans we originate, or on a theory of assignee liability in the case of residential loans we acquire). Additionally, following our acquisitions of the 5 Arches, CoreVest, and Riverbend business purpose loan origination platforms, there are litigation matters that relate to these platforms that represent a level of litigation activity that we believe is generally consistent with the ordinary course of business of a loan originator, which had not been associated with Redwood historically. In accordance with GAAP, we review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. Additionally, we record receivables for insurance recoveries relating to litigation-related losses and expenses if and when such amounts are covered by insurance and recovery of such losses or expenses are due. We review our litigation matters each quarter to assess these loss contingency reserves and make adjustments in these reserves, upwards or downwards, as appropriate, in accordance with GAAP based on our review. In the ordinary course of any litigation matter, including certain of the above-referenced matters, we have engaged and may continue to engage in formal or informal settlement communications with the plaintiffs or co-defendants. Settlement communications we have engaged in relating to certain of the above-referenced litigation matters are one of the factors that have resulted in our determination to establish the loss contingency reserves described above. We cannot be certain that any of these matters will be resolved through a settlement prior to litigation and we cannot be certain that the resolution of these matters, whether through trial, settlement, or otherwise, will not have a material adverse effect on our financial condition or results of operations in any future period. Future developments (including resolution of substantive pre-trial motions relating to these matters, receipt of additional information and documents relating to these matters (such as through pre-trial discovery), new or additional settlement communications with plaintiffs relating to these matters, or resolutions of similar claims against other defendants in these matters) could result in our concluding in the future to establish additional loss contingency reserves or to disclose an estimate of reasonably possible losses in excess of our established reserves with respect to these matters. Our actual losses with respect to the above referenced litigation matters may be materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters, including in the event that any of these matters proceeds to trial and the plaintiff prevails. Other factors that could result in our concluding to establish additional loss contingency reserves or estimate additional reasonably possible losses, or could result in our actual losses with respect to the above-referenced litigation matters being materially higher than the aggregate amount of loss contingency reserves we have established in respect of these litigation matters include that: there are significant factual and legal issues to be resolved; information obtained or rulings made during the lawsuits could affect the methodology for calculation of the available remedies; and we may have additional obligations pursuant to indemnity agreements, representations and warranties, and other contractual provisions with other parties relating to these litigation matters that could increase our potential losses.

Equity

Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2022 and 2021. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Years Ended December 31, 2022 2021 (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 $ 67,503 $ (76,430) $ 76,336 $ (80,557) Other comprehensive (loss) income before reclassifications (64,704) — 8,016 — Amounts reclassified from other accumulated comprehensive (loss) income 636 4,127 (16,849) 4,127 Net current-period other comprehensive (loss) income (64,068) 4,127 (8,833) 4,127 Balance at End of Period $ 3,435 $ (72,303) $ 67,503 $ (76,430) The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Year Ended December 31, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 2,541 $ (388) Gain on sales and calls of AFS securities Realized gains, net (1,905) (16,461) $ 636 $ (16,849) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 4,127 $ 4,127 $ 4,127 $ 4,127 Issuance of Common Stock We have an established program to sell common stock from time to time in at-the-market ("ATM") offerings. During the year ended December 31, 2022, we issued 5.2 million common shares for net proceeds of $67 million under this program. During the years ended December 31, 2021 and December 31, 2020, we issued 1.6 million and 0.1 million of common shares for net proceeds of $20 million and $2 million under this program, respectively. During the first quarter of 2022, we increased the capacity of this program to $175 million, all of which remained outstanding for future offerings under this program as of December 31, 2022. Direct Stock Purchase and Dividend Reinvestment Plan During the year ended December 31, 2022, we did not issue shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. During the year ended December 31, 2021, we issued 0.1 million shares of common stock for net proceeds of $1 million through our Direct Stock Purchase and Dividend Reinvestment Plan. At December 31, 2022, approximately 6 million shares remained outstanding for future offerings under this plan. Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2022, 2021, and 2020. Table 18.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2022 2021 2020 Basic Earnings (Loss) per Common Share: Net (loss) income attributable to Redwood $ (163,520) $ 319,613 $ (581,847) Less: Dividends and undistributed earnings allocated to participating securities (4,335) (10,635) (1,990) Net (loss) income allocated to common shareholders $ (167,855) $ 308,978 $ (583,837) Basic weighted average common shares outstanding 117,227,846 113,230,190 113,935,605 Basic (Loss) Earnings per Common Share $ (1.43) $ 2.73 $ (5.12) Diluted Earnings per Common Share: Net (loss) income attributable to Redwood $ (163,520) $ 319,613 $ (581,847) Less: Dividends and undistributed earnings allocated to participating securities (4,335) (9,880) (1,990) Add back: interest expense of convertible notes for the period, net of tax — 27,463 — Net (loss) income allocated to common shareholders $ (167,855) $ 337,196 $ (583,837) Weighted average common shares outstanding 117,227,846 113,230,190 113,935,605 Net effect of dilutive equity awards — 273,236 — Net effect of assumed convertible notes conversion to common shares — 28,566,875 — Diluted weighted average common shares outstanding 117,227,846 142,070,301 113,935,605 Diluted (Loss) Earnings per Common Share $ (1.43) $ 2.37 $ (5.12) 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. For the year ended December 31, 2021, certain of our convertible notes were determined to be dilutive and were included in the calculation of diluted EPS under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For the years ended December 31, 2022 and December 31, 2020, 40,081,997 and 31,306,089 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 years ended December 31, 2022, 2021, and 2020, the number of outstanding equity awards that were antidilutive totaled 226,975, 18,736, and 12,622, respectively. Stock Repurchases In July 2022, our Board of Directors approved an authorization for the repurchase of up to $125 million of our common stock, and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced our previous $100 million stock repurchase authorization. This authorization has no expiration date and does not obligate us to acquire any specific number of shares or securities. During the year ended December 31, 2022, we repurchased 7.1 million shares of our common stock for a total cost of $56 million. At December 31, 2022, $101 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. See Note 14. Short-Term Debt and Note 16. Long-Term Debt for information regarding our convertible and exchangeable debt repurchases in 2022.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At December 31, 2022 and 2021, 2,896,604 and 5,958,390 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 $40 million at December 31, 2022, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2022 (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 $ 84 $ 3,589 $ 26,473 $ 12,237 $ — $ 42,383 Equity grants — 4,688 11,672 9,875 224 26,459 Performance-based valuation adjustment — — — (3,205) — (3,205) Equity grant forfeitures (5) (548) (4,812) — — (5,365) Equity compensation expense (79) (2,661) (13,484) (3,636) (224) (20,084) Unrecognized Compensation Cost at End of Period $ — $ 5,068 $ 19,849 $ 15,271 $ — $ 40,188 At December 31, 2022, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Awards ("RSAs") The following table summarizes the activities related to RSAs for the years ended December 31, 2022, 2021, and 2020. Table 19.2 – Restricted Stock Awards Activities Years Ended December 31, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 28,141 $ 14.74 78,998 $ 15.23 216,470 $ 14.85 Granted — — — — — — Vested (27,800) 14.74 (50,857) 15.50 (102,615) 14.44 Forfeited (341) 14.66 — — (34,857) 15.16 Outstanding at End of Period — $ — 28,141 $ 14.74 78,998 $ 15.23 The expenses recorded for RSAs were $0.1 million, $0.5 million, and $1 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there were no restricted stock awards outstanding or any remaining unrecognized compensation costs related to these awards. Restricted Stock Units ("RSUs") The following table summarizes the activities related to RSUs for the years ended December 31, 2022, 2021, and 2020. Table 19.3 – Restricted Stock Units Activities Years Ended December 31, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 431,072 $ 11.55 282,424 $ 16.09 275,173 $ 15.65 Granted 558,388 8.38 272,261 8.80 205,482 16.86 Vested (134,426) 12.56 (78,270) 15.93 (68,076) 15.65 Forfeited (48,915) 11.04 (45,343) 15.75 (130,155) 16.60 Outstanding at End of Period 806,119 $ 9.22 431,072 $ 11.55 282,424 $ 16.09 The expenses recorded for RSUs were $3 million, $2 million, and $1 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was $5 million of unrecognized compensation cost related to unvested RSUs. This cost will be recognized over a weighted average period of less than 1 year. Restrictions on shares of RSUs outstanding lapse through 2026. Deferred Stock Units (“DSUs”) The following table summarizes the activities related to DSUs for the years ended December 31, 2022, 2021, and 2020. Table 19.4 – Deferred Stock Units Activities Years Ended December 31, 2022 2021 2020 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 4,022,088 $ 12.93 2,805,144 $ 13.84 2,630,805 $ 15.66 Granted 1,759,344 8.83 1,588,862 12.04 1,186,154 10.69 Distributions (551,401) 11.35 (340,757) 15.82 (720,562) 14.31 Forfeitures (398,693) 12.07 (31,161) 17.65 (291,253) 16.25 Balance at End of Period 4,831,338 $ 11.31 4,022,088 $ 12.93 2,805,144 $ 13.84 We generally grant DSUs annually, as part of our compensation process. In addition, DSUs are granted from time to time in connection with hiring and promotions and in lieu of the payment in cash of a portion of annual bonus earned. DSUs generally vest over the course of a four-year vesting period, and are distributed after the end of the final vesting period or after an employee is terminated. At December 31, 2022 and 2021, the number of outstanding DSUs that were unvested was 2,335,551 and 2,552,186, respectively, and the weighted average grant-date fair value of these unvested DSUs was $10.74 and $12.07 at December 31, 2022 and 2021, respectively. Unvested DSUs at December 31, 2022 will vest through 2026. Expenses related to DSUs were $13 million, $9 million, and $8 million for the years ended December 31, 2022, 2021, and 2020, respectively. At December 31, 2022, there was $20 million of unrecognized compensation cost related to unvested DSUs. This cost will be recognized over a weighted average period of less than 2 years. Performance Stock Units (“PSUs”) At December 31, 2022 and 2021, the target number of PSUs that were unvested was 2,354,002 and 1,473,883, respectively. During 2022, 2021, and 2020, 1,086,153, 518,173, and 473,845 target number of PSUs were granted, respectively, with per unit grant date fair values of $9.09, $15.68, and $10.42, respectively. The end of the vesting period for 275,831 target PSU awards that were granted in 2019 was January 1, 2023 and failure to reach a threshold level under their performance-based vesting criteria resulted in the vesting of no shares of our common stock underlying these PSUs. During the years ended December 31, 2022 and 2021, there were no PSUs forfeited due to employee departures. During the year ended December 31, 2020, 99,175 PSUs were forfeited due to employee departures. With respect to 1,086,153, 518,173, and 473,845 target number of PSUs granted in December 2022, December 2021, and December 2020, respectively, and outstanding at December 31, 2022, the number of underlying shares of common stock that vest and that the recipient becomes entitled to receive at the time of vesting will generally range from 0% to 250% of the target number of PSUs granted, with the target number of PSUs granted being adjusted to reflect the value of any dividends declared on our common stock during the vesting period. Vesting of these PSUs will generally occur as of January 1, 2026 for the December 2022 awards, January 1, 2025 for the December 2021 awards, and January 1, 2024 for the December 2020 awards. Vesting criteria for these awards are based on a three-step process as described below. With respect to the December 2022 PSU awards: • First, vesting would range from 0% - 250% of two-thirds of the Target PSUs granted based on the level of book value total shareholder return ("bvTSR") attained over the three-year vesting period, with 100% of this two-thirds of the Target PSUs vesting if three-year bvTSR is 25%. bvTSR is defined as the percentage by which our book value "per share price" has increased or decreased as of the last day of the three-year vesting period relative to the first day of such vesting period, adjusted to reflect the reinvestment of all dividends declared and/or paid on our common stock. • Second, vesting would range from 0% - 250% of one-third of the Target PSUs granted based on Redwood’s relative total shareholder return (“rTSR”) against a comparator group of companies measured over the three-year vesting period, with 100% of this one-third of the Target PSUs vesting if three-year rTSR corresponds to 55th percentile rTSR. • Third, if the aggregate vesting level after steps one and two is greater than 100% of the Target PSUs, but the Company's absolute total shareholder return ("TSR") is negative over the three-year performance period, vesting would be capped at 100% of Target PSUs. TSR is defined as the percentage by which our common stock “per share price” has increased or decreased as of the last day of the three-year vesting period relative to the first day of such vesting period, adjusted to reflect the reinvestment of all dividends declared and/or paid on our common stock. With respect to the December 2021 and 2020 PSU awards: • First, Target PSUs are divided into three equal tranches. Baseline vesting for each tranche would range from 0% - 200% of the Target PSUs in such tranche based on the level of the Company's bvTSR attained over a corresponding calendar year measurement period within the three-year vesting period, with 100% of the Target PSUs in each tranche vesting if one-year bvTSR for such tranche is 7.7%. • Second, at the end of the three-year vesting period, the aggregate vesting level of the three tranches, or total baseline vesting, would then be adjusted to increase or decrease by up to 50 percentage points based on the Company's three-year rTSR against a comparator group of companies measured over the three-year vesting period, with median rTSR performance correlating to no adjustment from the total baseline level of vesting. • Third, if the aggregate vesting level after steps one and two is greater than 100% of the Target PSUs, but the Company's absolute TSR is negative over the three-year performance period, vesting would be capped at 100% of Target PSUs. With respect to the December 2019 PSU awards: • First, baseline vesting would range from 0% - 200% of the target number of PSUs granted based on the level of bvTSR attained over the three-year vesting period, with 100% of the target number of PSUs vesting if three-year bvTSR is 25%. • Second, the vesting level would then be adjusted to increase or decrease by up to an additional 50 percentage points based on Redwood’s rTSR against a comparator group of companies measured over the three-year vesting period, with median rTSR performance correlating to no adjustment from the baseline level of vesting. • Third, if the vesting level after steps one and two is greater than 100% of the target number of PSUs, but absolute TSR is negative over the three-year performance period, vesting would be capped at 100% of target number of PSUs. The grant date fair value of the December 2022 PSUs of $9.09 per unit was determined through Monte-Carlo simulations using the following assumptions: the common stock closing price at the grant date for Redwood and each member of the comparator group, the average closing price of the common stock price for the 60 trading days beginning January 1, 2023 for Redwood and each member of the comparator group, and the range of performance-based vesting based on absolute TSR over three years from the grant date. For the 2022 PSU grant, an implied volatility assumption of 69% (based on historical volatility), a risk-free rate of 3.91% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs) were used. The grant date fair value of the December 2021 PSUs of $15.68 per unit was determined through Monte-Carlo simulations using the following assumptions: the common stock closing price at the grant date for Redwood and each member of the comparator group, the average closing price of the common stock price for the 60 trading days beginning January 1, 2022 for Redwood and each member of the comparator group, and the range of performance-based vesting based on absolute TSR over three years from the grant date. For the 2021 PSU grant, an implied volatility assumption of 59% (based on historical volatility), a risk-free rate of 0.98% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs) were used. The grant date fair value of the December 2020 PSUs of $10.42 per unit was determined through Monte-Carlo simulations using the following assumptions: the common stock closing price at the grant date for Redwood and each member of the comparator group, the average closing price of the common stock price for the 60 trading days beginning January 1, 2021 for Redwood and each member of the comparator group, and the range of performance-based vesting based on absolute TSR over three years from the grant date. For the 2020 PSU grant, an implied volatility assumption of 54% (based on historical volatility), a risk-free rate of 0.18% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs) were used. The grant date fair value of the December 2019 PSUs of $17.13 per unit was determined through Monte-Carlo simulations using the following assumptions: the common stock closing price at the grant date for Redwood and each member of the comparator group, the average closing price of the common stock price for the 60 trading days prior to the grant date for Redwood and each member of the comparator group, and the range of performance-based vesting based on Absolute TSR over three years from the grant date. For the 2019 PSU grant, an implied volatility assumption of 15% (based on historical volatility), a risk-free rate of 1.68% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs) were used. Expenses related to PSUs were $4 million for the year ended December 31, 2022, $3 million for the year ended December 31, 2021, and $0.1 million for the year ended December 31, 2020. As of December 31, 2022, there was $15 million of unrecognized compensation cost related to unvested PSUs. During 2022, for PSUs granted in 2021 and 2020, we adjusted the cumulative expected amortization expense down by $3 million to reflect our revised vesting estimate that none of the shares would vest in relation to the bvTSR performance condition for the initial one-year vesting tranche of the 2021 PSU grant and the second-year vesting tranche of the 2020 PSU grant. During 2021, for PSUs granted in 2020, we adjusted the cumulative expected amortization expense up by $1 million to reflect our revised vesting estimate that 200% of the target shares would vest in relation to the bvTSR performance condition for the initial one-year vesting tranche. During 2020, for PSUs granted in 2018 and 2019, we adjusted our vesting estimate down to assume that none of these awards would meet the minimum performance thresholds for vesting, resulting in a reversal of $1 million of stock-based compensation expense that had been recorded prior to 2020. 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 December 31, 2022, 657,777 shares had been purchased, and there remained a negligible amount of uninvested employee contributions in the ESPP at December 31, 2022. The following table summarizes the activities related to the ESPP for the years ended December 31, 2022, 2021, and 2020. Table 19.5 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Balance at beginning of period $ 7 $ 17 $ 4 Employee purchases 584 595 347 Cost of common stock issued (555) (605) (334) Balance at End of Period $ 36 $ 7 $ 17 Executive Deferred Compensation Plan The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2022, 2021, and 2020. Table 19.6 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Balance at beginning of period $ 2,730 $ 2,289 $ 2,454 New deferrals 1,083 1,017 726 Accrued interest 108 56 42 Withdrawals (614) (632) (933) Balance at End of Period $ 3,307 $ 2,730 $ 2,289 In 2022, our Board of Directors approved an amendment to the EDCP to increase by 200,000 shares the shares available to allow non-employee directors to defer certain cash payments and dividends into DSUs. At December 31, 2022, there were 151,005 shares available for grant under this plan.

Mortgage Banking Activities

Mortgage Banking Activities	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Mortgage Banking Activities	Mortgage Banking Activities The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the years ended December 31, 2022, 2021, and 2020. Table 20.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (131,675) $ 83,733 $ 41,284 Trading securities (2) 4,249 (352) (4,535) Risk management derivatives (3) 100,713 38,352 (26,376) Other income (expense), net (4) 5,431 5,418 (6,652) Total residential mortgage banking activities, net (21,282) 127,151 3,721 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: BPL term loans, at fair value (1) (91,690) 63,872 82,510 BPL bridge loans, at fair value 2,679 8,253 (4,998) Risk management derivatives (3) 56,731 2,708 (21,403) Other income, net (5) 39,903 33,760 18,642 Total business purpose mortgage banking activities, net 7,623 108,593 74,751 Mortgage Banking Activities, Net $ (13,659) $ 235,744 $ 78,472 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For business purpose loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used along 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 repurchases, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income

Other Income	12 Months Ended
	Dec. 31, 2022
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 years ended December 31, 2022, 2021 and 2020. Table 21.1 – Other Income, Net Years Ended December 31, (In Thousands) 2022 2021 2020 MSR income (loss), net (1) $ 14,879 $ 2,380 $ (9,694) Risk share income 1,289 2,815 4,367 FHLBC capital stock dividend — 53 1,229 Bridge Loan Fees 5,276 4,194 3,812 BPL loan administration fee income — 184 2,912 Other, net (240) 2,392 1,562 Other Income, Net $ 21,204 $ 12,018 $ 4,188

Operating Expenses

Operating Expenses	12 Months Ended
	Dec. 31, 2022
Other Income and Expenses [Abstract]
Operating Expenses	Operating Expenses Components of our general and administrative expenses, portfolio management costs, loan acquisition costs, and other expenses for the years ended December 31, 2022, 2021 and 2020 are presented in the following table. Table 22.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2022 2021 2020 General and Administrative Expenses Fixed compensation expense (1) $ 63,642 $ 46,328 $ 46,689 Annual variable compensation expense 12,873 58,569 14,116 Long-term incentive award expense (2) 23,101 19,938 12,439 Acquisition-related equity compensation expense (3) — 3,813 4,848 Systems and consulting 14,193 14,445 11,728 Office costs 8,574 7,837 7,794 Accounting and legal 6,644 4,975 7,928 Corporate costs 3,675 3,388 2,829 Other 8,206 5,925 5,127 Total General and Administrative Expenses 140,908 165,218 113,498 Portfolio Management Costs 7,951 5,758 4,204 Loan Acquisition Costs Commissions 7,154 7,116 4,321 Underwriting costs 3,368 7,645 2,447 Transfer and holding costs 1,244 1,458 1,757 Total Loan Acquisition Costs 11,766 16,219 8,525 Other Expenses Goodwill impairment expense — — 88,675 Amortization of purchase-related intangible assets 13,969 15,304 15,925 Other 1,621 1,391 4,185 Total Other Expenses 15,590 16,695 108,785 Total Operating Expenses $ 176,215 $ 203,890 $ 235,012 (1) Includes $7 million of severance and transition-related expenses for the year ended December 31, 2022. (2) For the years ended December 31, 2022 and 2021, long-term incentive award expense includes $20 million and $14 million, respectively, of expense for awards settleable in shares of our common stock and $3 million and $6 million, respectively, of expense for awards settleable in cash. (3) 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 in 2019. During the third and fourth quarters of 2022, we initiated various expense management initiatives, including the restructuring of our Business Purpose Mortgage Banking management team, and incurred $7 million of employee severance and related transition expenses, which were incurred almost entirely at our Business Purpose Mortgage Banking segment. Cash-Settled Deferred Stock Units During the years ended December 31, 2022, 2021 and 2020, $3 million, $4 million and $2 million of cash-settled deferred stock units, respectively, were granted to certain executive officers and non-executive employees that will vest over the next four years through 2026. These awards will be fully vested and payable in cash with a vested award value based on the closing market price of our common stock on their respective final vesting dates. These awards are classified as liabilities in Accrued expenses and other liabilities on our consolidated balance sheets, and are being amortized over their respective vesting periods on a straight-line basis, adjusted for changes in the value of our common stock at the end of each reporting period. For the years ended December 31, 2022, 2021 and 2020, we recognized an expense of $1 million, $2 million and $0.1 million, respectively, for cash-settled deferred stock units in "Long-term incentive award expense," as presented in Table 22.1 above. At December 31, 2022 and December 31, 2021, the unamortized compensation cost of cash-settled deferred stock units was $5 million and $7 million, respectively. The compensation costs associated with these awards are adjusted for changes in the value of our common stock at the end of each reporting period. Long-Term Cash-Based Awards During the years ended December 31, 2022 , 2021 and 2020, $3 million, $1 million and $8 million of long-term cash-based retention awards were granted to certain executive and non-executive employees, respectively, that will vest and be paid over one The value of long-term cash-based awards is being amortized into expense on a straight-line basis over each award's respective vesting period. The Cash Performance Awards are amortized on a straight-line basis over three years; however, they are remeasured at fair value each quarter-end and the cumulative straight-line expense is trued-up in respect to their updated value. For the years ended December 31, 2022, 2021 and 2020, General and administrative expenses included $1 million, $3 million and $5 million of aggregate expense, respectively, related to long-term cash-based awards and the Cash Performance awards.

Taxes

Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Taxes	Taxes Components of our net deferred tax assets at December 31, 2022 and 2021 are presented in the following table. Table 23.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2022 December 31, 2021 Deferred Tax Assets Net operating loss carryforward – state $ 102,795 $ 98,011 Net capital loss carryforward – state 17,244 18,082 Net operating loss carryforward – federal 18,738 82 Real estate assets 2,851 1,347 Allowances and accruals 3,035 3,528 Goodwill and intangible assets 26,193 24,973 Other 3,803 3,016 Tax effect of unrealized (gains) / losses - OCI 365 (21) Total Deferred Tax Assets 175,024 149,018 Deferred Tax Liabilities Mortgage Servicing Rights (7,475) (3,617) Interest rate agreements (2,780) (3,324) Total Deferred Tax Liabilities (10,255) (6,941) Valuation allowance (122,838) (121,210) Total Net Deferred Tax Asset, net of Valuation Allowance $ 41,931 $ 20,867 The deferred tax assets and liabilities reported above, with the exception of the state net operating loss ("NOL") and capital loss carryforwards, relate solely to our TRS. For state purposes, the REIT files a unitary combined return with its TRS. Because the REIT may have state taxable income apportioned to it from the activity of its TRS, we report the entire combined unitary state NOL and capital loss carryforwards as deferred tax assets, including the carryforwards allocated to the REIT. Realization of our deferred tax assets ("DTAs") at December 31, 2022, is dependent on many factors, including generating sufficient taxable income prior to the expiration of NOL carryforwards (where applicable) and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards. We determine the extent to which realization of the deferred assets is not assured and establish a valuation allowance accordingly. As we experienced full-year 2022 GAAP losses at our TRS, we closely analyzed our estimate of the realizability of our net deferred tax assets in whole and in part. The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is "more likely than not" that some portion of the deferred tax assets would not be realized. This evaluation requires significant judgment and changes to our assumptions could result in a material change in the valuation allowance. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods. The Company conducts its evaluation by considering, among other things, all available positive and negative evidence, historical operating results and cumulative earnings analysis, forecasts of future profitability, and the duration of statutory carryforward periods. Based on this analysis, we continue to believe it is more likely than not that we will realize our federal deferred tax assets in future periods as income is earned at our TRS; therefore, there continues to be no material valuation allowance recorded against our net federal DTAs. Consistent with prior periods, we continued to maintain a valuation allowance against the majority of our net state DTAs as we remained uncertain about our ability to generate sufficient income in future periods needed to utilize net state DTAs beyond the reversal of our state DTLs. The net increase in the total valuation allowance was $2 million in 2022. For the year ended December 31, 2021, we reassessed the valuation allowance on our deferred tax assets ("DTAs") noting an increase in positive evidence related to our ability to utilize certain DTAs. At the time of the evaluation, the positive evidence included significant revenue growth in recent quarters and expectations regarding future profitability at our TRS. After assessing both the positive and negative evidence, we determined it was more likely than not that we would realize all of our federal DTAs. Therefore, we reversed our federal valuation allowance of $17 million as a discrete benefit in the third quarter of 2021. In addition to the federal valuation allowance release, we determined it was more likely than not that we would realize a portion of our state DTAs and, as such, reversed $3 million of state valuation allowance as a discrete item in the third quarter of 2021. Our estimate of net deferred tax assets could change in future periods to the extent that actual or revised estimates of future taxable income during the carryforward periods change from current expectations. We assessed our tax positions for all open tax years (i.e., Federal, 2019 to 2022, and State, 2018 to 2022) and, at December 31, 2022 and 2021, concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. At December 31, 2022, our federal NOL carryforward at the REIT was $37 million, of which $29 million will expire in 2029 and $9 million will carry forward indefinitely. In order to utilize NOLs at the REIT, taxable income must exceed dividend distributions. At December 31, 2022, our taxable REIT subsidiaries had $89 million of federal NOLs which will carry forward indefinitely. Redwood and its taxable REIT subsidiaries accumulated an estimated state NOL of $1.20 billion at December 31, 2022. These NOLs expire beginning in 2031. If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized. The following table summarizes the provision for income taxes for the years ended December 31, 2022, 2021, and 2020. Table 23.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2022 2021 2020 Current Provision for Income Taxes Federal $ 340 $ 28,718 $ 1,598 State 496 9,859 (182) Total Current Provision for Income Taxes 836 38,577 1,416 Deferred (Benefit) Provision for Income Taxes Federal (19,083) (17,172) (6,024) State (1,673) (2,927) — Total Deferred (Benefit) Provision for Income Taxes (20,756) (20,099) (6,024) Total (Benefit From) Provision for Income Taxes $ (19,920) $ 18,478 $ (4,608) The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2022, 2021, and 2020. Table 23.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2022 December 31, 2021 December 31, 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect, as applicable 0.9 % 1.8 % — % Differences in taxable income from GAAP income (0.5) % (2.9) % (1.4) % Change in valuation allowance — % (4.9) % (2.8) % REIT GAAP income or loss not subject to federal income tax (10.5) % (9.5) % (16.0) % Effective Tax Rate 10.9 % 5.5 % 0.8 %

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies. For a full description of our segments, see Item 1—Business in this Annual Report on Form 10-K. Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain corporate expenses not directly assigned or allocated to one of our 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 for our convertible notes and trust preferred securities (and in 2022 and 2020, realized gains from the repurchase of convertible notes), indirect general and administrative expenses and other expense. The following tables present financial information by segment for the years ended December 31, 2022, 2021, and 2020. Table 24.1 – Business Segment Financial Information Year Ended December 31, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 45,202 $ 28,674 $ 627,134 $ 6,844 $ 707,854 Interest expense (32,735) (18,041) (445,154) (56,470) (552,400) Net interest income 12,467 10,633 181,980 (49,626) 155,454 Non-interest (loss) income Mortgage banking activities, net (21,282) 7,623 — — (13,659) Investment fair value changes, net — — (191,148) 15,590 (175,558) Other income, net — 3,509 18,596 (901) 21,204 Realized gains, net — — 3,174 2,160 5,334 Total non-interest (loss) income, net (21,282) 11,132 (169,378) 16,849 (162,679) General and administrative expenses (22,566) (56,557) (6,036) (55,749) (140,908) Portfolio management costs — — (7,951) — (7,951) Loan acquisition costs (3,085) (8,681) — — (11,766) Other expenses 74 (13,969) (1,695) — (15,590) Benefit from (Provision for) income taxes 12,814 13,157 (6,051) — 19,920 Segment Contribution $ (21,578) $ (44,285) $ (9,131) $ (88,526) Net (loss) $ (163,520) Non-cash amortization (expense) income, net $ (1,075) $ (15,071) $ 2,507 $ (8,289) $ (21,928) Table 24.1 – Business Segment Financial Information (continued) Year Ended December 31, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 48,953 $ 14,054 $ 507,173 $ 4,746 $ 574,926 Interest expense (26,963) (7,230) (351,635) (40,921) (426,749) Net interest income 21,990 6,824 155,538 (36,175) 148,177 Non-interest income (loss) Mortgage banking activities, net 127,151 108,593 — — 235,744 Investment fair value changes, net — — 129,614 (1,565) 128,049 Other income, net — 1,046 10,021 951 12,018 Realized gains, net — — 17,993 — 17,993 Total non-interest income (loss), net 127,151 109,639 157,628 (614) 393,804 General and administrative expenses (33,574) (46,586) (7,992) (77,066) (165,218) Portfolio management costs — — (5,758) — (5,758) Loan acquisition costs (7,480) (8,100) (635) (4) (16,219) Other expenses 104 (15,127) (1,689) 17 (16,695) (Provision for) Benefit from income taxes (25,777) (8,122) (3,862) 19,283 (18,478) Segment Contribution $ 82,414 $ 38,528 $ 293,230 $ (94,559) Net Income $ 319,613 Non-cash amortization (expense) income, net $ (82) $ (16,452) $ (20,781) $ (7,878) $ (45,193) Table 24.1 – Business Segment Financial Information (continued) Year Ended December 31, 2020 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 17,839 $ 19,200 $ 525,741 $ 9,136 $ 571,916 Interest expense (11,978) (13,145) (375,262) (47,620) (448,005) Net interest income 5,861 6,055 150,479 (38,484) 123,911 Non-interest income Mortgage banking activities, net 3,721 74,622 129 — 78,472 Investment fair value changes, net — (101) (586,333) (2,004) (588,438) Other income, net — 3,228 (1,725) 2,685 4,188 Realized gains, net — — 5,242 25,182 30,424 Total non-interest income (loss), net 3,721 77,749 (582,687) 25,863 (475,354) General and administrative expenses (16,318) (37,461) (6,819) (52,900) (113,498) Portfolio management costs (50) — (4,154) — (4,204) Loan acquisition costs (2,656) (5,859) — (10) (8,525) Other expense (4,114) (104,147) 194 (718) (108,785) Benefit from (provision for) income taxes 4,567 (4,063) 4,104 — 4,608 Segment Contribution $ (8,989) $ (67,726) $ (438,883) $ (66,249) Net (loss) $ (581,847) Non-cash amortization income (expense), net $ (662) $ (18,426) $ (1,282) $ (4,954) $ (25,324) Other significant non-cash expense: goodwill impairment — (88,675) — — (88,675) The following table presents the components of Corporate/Other for the years ended December 31, 2022, 2021, and 2020. Table 24.2 – Components of Corporate/Other Years Ended December 31, 2022 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 5,672 $ 1,172 $ 6,844 $ 4,709 $ 37 $ 4,746 $ 9,061 $ 75 $ 9,136 Interest expense (5,206) (51,264) (56,470) (3,040) (37,881) (40,921) (5,945) (41,675) (47,620) Net interest income (loss) 466 (50,092) (49,626) 1,669 (37,844) (36,175) 3,116 (41,600) (38,484) Non-interest income Investment fair value changes, net (1,302) 16,892 15,590 (1,558) (7) (1,565) (1,512) (492) (2,004) Other income, net — (901) (901) — 951 951 — 2,685 2,685 Realized gains, net — 2,160 2,160 — — — — 25,182 25,182 Total non-interest (loss) income, net (1,302) 18,151 16,849 (1,558) 944 (614) (1,512) 27,375 25,863 General and administrative expenses — (55,749) (55,749) — (77,066) (77,066) — (52,900) (52,900) Portfolio management costs — — — — — — — — — Loan acquisition costs — — — — (4) (4) — (10) (10) Other expenses — — — — 17 17 — (718) (718) Benefit from income taxes — — — — 19,283 19,283 — — — Total $ (836) $ (87,690) $ (88,526) $ 111 $ (94,670) $ (94,559) $ 1,604 $ (67,853) $ (66,249) (1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs. The following table presents supplemental information by segment at December 31, 2022 and 2021. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total December 31, 2022 Residential loans $ 628,160 $ — $ 4,800,096 $ 184,932 $ 5,613,188 Business purpose loans — 364,073 4,968,513 — 5,332,586 Consolidated Agency multifamily loans — — 424,551 — 424,551 Real estate securities — — 240,475 — 240,475 Home equity investments — — 403,462 403,462 Other investments — — 334,420 56,518 390,938 Goodwill — 23,373 — — 23,373 Intangible assets — 40,892 — — 40,892 Total assets 660,916 487,159 11,303,991 578,833 13,030,899 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Consolidated Agency multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Home equity investments — — 192,740 — 192,740 Other investments — — 413,527 35,702 449,229 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn January 2023, Redwood issued 2,800,000 shares of 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") for gross proceeds of $70 million and net proceeds of approximately $67 million after deducting the underwriting discount and other estimated expenses. The Series A Preferred Stock will pay quarterly cumulative cash dividends beginning April 15, 2023 to January 15, 2028 at a fixed annual rate of 10%, based on the stated liquidation preference of $25.00 per share, in arrears, when authorized by Redwood's board of directors and declared by the Company. Starting April 15, 2028, the annual dividend rate will reset to the five-year U.S. Treasury Rate plus a spread of 6.278%. The Series A Preferred Stock ranks senior to Redwood's common stock with respect to rights to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Company.

Schedule IV - Mortgage Loans On

Schedule IV - Mortgage Loans On Real Estate	12 Months Ended
	Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule IV - Mortgage Loans On Real Estate	(In Thousands) Description Number of Interest Maturity Carrying Amount Principal Amount Subject to Delinquent Principal or Interest Residential Loans Held-for-Investment At Legacy Sequoia (1) : ARM loans 1,297 1.25 % to 6.13% 2022-06 - 2036-03 $ 183,204 $ 6,824 Hybrid ARM loans 7 2.88 % to 4.63% 2033-07 - 2034-03 1,729 — At Sequoia (1) : Hybrid ARM loans 17 3.38 % to 5.63% 2044-04 - 2049-08 10,959 637 Fixed loans 4,607 1.88 % to 6.75% 2029-04 - 2052-01 3,179,457 7,162 At Freddie Mac SLST (2) : Fixed loans 10,882 2.00 % to 11.00% 2022-12 - 2062-11 1,457,058 209,397 Total Residential Loans Held-for-Investment $ 4,832,407 $ 224,020 Residential Loans Held-for-Sale (3) : Hybrid ARM loans 8 3.63 % to 6.50% 2032-11 - 2052-12 $ 4,130 $ — Fixed loans 986 2.75 % to 9.25% 2026-04 - 2053-01 776,651 208 Total Residential Loans Held-for-Sale $ 780,781 $ 208 BPL Term Loans Held-for-Sale (3) : Fixed loans 91 3.75 % to 8.47% 2021-08 - 2052-07 $ 358,791 $ 536 Total BPL Term Loans Held-for-Sale $ 358,791 $ 536 BPL Term Loans Held-for-Investment: At CAFL (1) : Fixed loans 1,131 3.81 % to 7.57% 2022-06 - 2032-08 $ 2,944,984 $ 39,483 Total BPL Term Loans Held-for-Investment $ 2,944,984 $ 39,483 BPL Bridge Loans at Redwood (4) : Fixed loans 261 6.00 % to 11.50% 2020-05 - 2024-06 $ 99,974 $ 33,392 Floating ARM loans 1,340 8.27 % to 11.87% 2021-10 - 2025-09 $ 1,412,453 $ 872 Total BPL Bridge Loans at Redwood $ 1,512,427 $ 34,264 BPL Bridge Loans Held-for-Investment at CAFL (4) : Fixed loans 605 6.30 % to 11.24% 2022-05 - 2024-03 $ 110,869 $ 3,953 Floating ARM loans 1,270 6.12 % to 12.62% 2021-10 - 2025-03 $ 405,514 $ 3,375 Total BPL Bridge Loans Held-for-Investment at CAFL $ 516,383 $ 7,328 Consolidated Agency multifamily Loans Held-for-Investment (2) : At Freddie Mac K-Series: Fixed loans 28 4.25 % to 4.25% 2025-09 - 2025-09 $ 424,552 $ — Total Consolidated Agency Multifamily Loans Held-for-Investment $ 424,552 $ — (1) For our held-for-investment loans at consolidated Legacy Sequoia, Sequoia, and CAFL entities, the aggregate tax basis for Federal income tax purposes at December 31, 2022 was zero, as the transfers of these loans into securitizations were treated as sales for tax purposes. (2) Our held-for-investment loans at Freddie Mac SLST and Freddie Mac K-Series entities were consolidated for GAAP purposes. For tax purposes, we acquired real estate securities issued by these entities and therefore, the tax basis in these loans was zero at December 31, 2022. (3) The aggregate tax basis for Federal income tax purposes of our mortgage loans held at Redwood approximates the carrying values, as disclosed in the schedule. (4) For our BPL bridge loans, the aggregate tax basis for Federal income tax purposes at December 31, 2022 was $2.03 billion. The following table summarizes the changes in the carrying amount of mortgage loans on real estate during the years ended December 31, 2022, 2021, and 2020. Years Ended December 31, (In Thousands) 2022 2021 2020 Balance at beginning of period $ 12,856,934 $ 8,877,626 $ 15,630,117 Additions during period: Originations/acquisitions 6,589,943 15,427,382 5,914,728 Deductions during period: Sales (4,325,790) (8,660,440) (6,398,690) Principal repayments (2,199,109) (2,675,859) (2,313,143) Transfers to REO (8,495) (40,038) (14,104) Deconsolidation adjustments — — (3,849,779) Changes in fair value, net (1,543,160) (71,737) (91,503) Balance at end of period $ 11,370,323 $ 12,856,934 $ 8,877,626

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements presented herein are at December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021, and 2020. These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — and the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at December 31, 2022 and 2021, and results of operations for all periods presented.
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 BPL term and bridge loans ("CAFL") and an entity 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 Legacy Sequoia, 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 Consolidated Agency multifamily loans, at fair value, the underlying BPL term 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 HEI securitization entity are shown under Home equity 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 record 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 15 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.
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.
Business Combinations	We use the acquisition method of accounting for business combinations, under which the purchase price is allocated to the fair values of the assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over the amount allocated to the assets acquired and liabilities assumed is recorded as goodwill. Acquisition-related costs are expensed as incurred.
Fair Value Measurements	Our consolidated financial statements include assets and liabilities that are measured at their estimated fair values in accordance with GAAP. A fair value measurement represents the price at which an orderly transaction would occur between willing market participants at the measurement date. We develop fair values for financial assets or liabilities based on available inputs and pricing that is observed in the marketplace. After considering all available indications of the appropriate rate of return that market participants would require, we consider the reasonableness of the range indicated by the results to determine an estimate that is most representative of fair value. The markets for many of the assets that we invest in and issue are generally illiquid. Establishing fair values for illiquid assets and liabilities is inherently subjective and is often dependent upon our estimates and modeling assumptions. If we determine that either the volume and/or level of trading activity for an asset or liability has significantly decreased from normal market conditions, or price quotations or observable inputs are not associated with orderly transactions, the market inputs that we obtain might not be relevant. For example, broker or pricing service quotes might not be relevant if an active market does not exist for the financial asset or liability. The nature of the quote (for example, whether the quote is an indicative price or a binding offer) is also evaluated.
Fair Value Option	We have the option to measure eligible financial assets, financial liabilities, and commitments at fair value on an instrument-by-instrument basis. This option is available when we first recognize a financial asset or financial liability or enter into a firm commitment. Subsequent changes in the fair value of assets, liabilities, and commitments where we have elected the fair value option are recorded in our consolidated statements of income (loss). We elect the fair value option for certain residential loans, business purpose loans, interest-only (“IO”) and certain subordinate securities, MSRs, servicer advance investments, HEI, and certain of our other investments. We generally elect the fair value option for residential and business purpose loans that are held-for-sale, due to our intent to sell or securitize the loans in the near-term and for BPL bridge loans due to their shorter duration. We elect the fair value option for our IO and certain subordinate securities, and MSRs, for which we may hedge market interest rate risk. In addition, we elect the fair value option for the assets and liabilities of our consolidated Sequoia, Freddie Mac SLST, Freddie Mac K-Series, CAFL Term, and HEI entities in accordance with GAAP accounting for collateralized financing entities ("CFEs").
Real Estate Loans	Residential Loans - Held-for-Sale at Fair Value Residential loans held-for-sale include loans that we are marketing for sale to third parties, including transfers to securitization entities that we plan to sponsor. We generally elect the fair value option for residential loans that we purchase with the intent to sell to third parties or transfer to Sequoia securitizations. Coupon interest is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Mortgage banking activities, net. Residential Loans - Held-for-Investment At Fair Value We record residential loans held at consolidated Sequoia and Freddie Mac SLST entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue when earned and deemed collectible. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Business Purpose Loans We originate and purchase business purpose loans (also referred to as business purpose lending ("BPL") loans), for subsequent securitization, sale, or transfer into our investment portfolio. Business purpose loans are loans to investors in single-family rental and multifamily housing properties, which we classify as either "term" loans (which include loans with maturities that generally range from 3 to 30 years) or "bridge" loans (generally include loans with maturities between 12 and 36 months). Single-family rental loans are mortgage loans secured by residential real estate (primarily 1-4 unit) that the borrower owns as an investment property and rents to residential tenants. BPL bridge loans are mortgage loans which are generally secured by unoccupied residential or multifamily real estate that the borrower owns as an investment and that is being renovated, rehabilitated or constructed. Business Purpose Loans Held-for-Sale at Fair Value – we classify business purpose loans as held-for-sale at fair value when we originate or purchase these loans with the intent to transfer the loans to securitization entities or sell the loans to third parties. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value are recurring and reported through our consolidated statements of income (loss) in Mortgage banking activities, net. Business Purpose Loans Held-for-Investment at Fair Value – we classify business purpose loans as held-for-investment at fair value if we intend to hold these loans to maturity. Coupon interest for these loans is recognized as revenue when earned and deemed collectible or until a loan becomes more than 90 days past due, at which point the loan is placed on nonaccrual status and any accrued interest is reversed against interest income. When a seriously delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Changes in fair value for these loans are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. In addition, we record loans held at consolidated CAFL Term entities at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by these entities (which we determined to be more observable) to determine the fair value of the loans held at these entities. Coupon interest for these loans is recognized as revenue based on amounts expected to be paid to the securities issued by these entities. Changes in fair value for these loans and related ABS are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Consolidated Agency Multifamily Loans, Held-for-Investment at Fair Value Multifamily loans are mortgage loans secured by multifamily properties, held in a Freddie Mac-sponsored K-series securitization trust that we consolidate. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by the Freddie Mac K-Series entity (which we determined to be more observable) to determine the fair value of the loans. Coupon interest for these loans is recognized as revenue based on amounts expected to be paid to the securities issued by this entity. Changes in fair value for the loans and related ABS are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. Repurchase Reserves We sell and have sold residential and business purpose mortgage loans to various parties, including (1) securitization trusts, and (2) banks and other financial institutions that purchase mortgage loans for investment or private label securitization. We may be required to repurchase mortgage loans we have sold, or loans associated with MSRs we have purchased, in the event of a breach of specified contractual representations and warranties made in connection with these sales and purchases. Additionally, we generally have a direct obligation to repurchase residential whole loans we sell in the event of any early payment defaults (or EPDs) by the underlying mortgage borrowers within certain specified periods following the sales. We do not originate residential mortgage loans and believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans or MSRs. However, in some cases, such as where loans or MSRs were acquired from companies that have since become insolvent, we may have to bear the loss associated with a loan repurchase. Furthermore, even if we do not have to ultimately bear such a loss because we can recover from the company that sold us the loan or the MSR, there could be a delay in making that recovery.
Real Estate Securities, at Fair Value	Our securities primarily consist of mortgage-backed securities (“MBS”) collateralized by residential loans, re-performing loans ("RPL") and multifamily mortgage loans. We classify our real estate securities as trading or available-for-sale securities. Trading Securities We primarily denote trading securities as those securities where we have adopted the fair value option. Trading securities are carried at their estimated fair values. Coupon interest is recognized as interest income when earned and deemed collectible. Changes in the fair value of securities designated as trading securities are reported in Investment fair value changes, net on our consolidated statements of income (loss). Available-for-Sale Securities AFS securities are carried at their estimated fair value with unrealized gains and losses excluded from earnings (except when an allowance for credit losses is recognized, as discussed below) and reported in Accumulated other comprehensive income (loss) (“AOCI”), a component of stockholders’ equity. Interest income on AFS securities is accrued based on their outstanding principal balance and contractual terms and interest income is recognized based on the security’s effective interest rate. In order to calculate the effective interest rate, we must project cash flows over the remaining life of each security and make assumptions with regards to interest rates, prepayment rates, the timing and amount of credit losses, estimated call dates and other factors. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections based on input and analysis received from external sources, internal models, and our own judgments about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield and interest income recognized on these securities or in the recognition of an allowance for credit losses as discussed below. For AFS securities purchased and held at a discount, a portion of the discount may be designated as non-accretable purchase discount (“credit reserve”), based on the cash flows we have projected for the security. The amount designated as credit reserve may be adjusted over time, based on our periodic evaluation of projected cash flows. If the performance of a security with a credit reserve is more favorable than previously forecasted, a portion of the credit reserve may be reallocated to accretable discount and recognized into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and write-downs of such securities to a new cost basis could result. Upon adoption of ASU 2016-13, "Financial Instruments - Credit Losses" in the first quarter of 2020, we modified our policy for recording impairments on available-for-sale securities. This guidance requires that credit impairments on our available-for-sale securities be recorded in earnings using an allowance for credit losses, with the allowance limited to the amount by which the security's fair value is less than its amortized cost basis. The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the difference between the beneficial interest’s amortized cost and the estimate of cash flows expected to be collected, discounted at the effective interest rate used to accrete the beneficial interest. No allowance is recorded for beneficial interests in an unrealized gain position. Favorable changes in the discounted cash flows will result in a reduction in the allowance for credit losses, if any. Any reduction in allowance for credit losses is recorded in earnings. If the allowance for credit losses has been reduced to zero, the remaining favorable changes are reflected as a prospective increase to the effective interest rate. If we intend to sell or it is more likely than not that we will be required to sell the security before it recovers in value, the entire impairment amount will be recognized in earnings with a corresponding adjustment to the security's amortized cost basis. See Note 9 for further discussion on real estate securities. Home Equity Investment Contracts We invest in home equity investment contracts from third-party originators under flow purchase agreements. 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. We have elected to record these investments at fair value and report changes in fair value through Investment fair value changes, net on our consolidated statements of income (loss). In addition, we record HEIs held at a consolidated HEI securitization entity at fair value. In accordance with accounting guidance for CFEs, we use the fair value of the ABS issued by this entity (which we determined to be more observable) to determine the fair value of the HEIs held at this entity. Changes in fair value of the HEI assets held by this entity and the ABS issued by this entity (including the interest expense component of the ABS issued) are recorded through investment fair value changes, net on our consolidated statements of income (loss).
Other Investments	Servicer Advance Investments Our servicer advance investments are comprised of outstanding servicer advances receivable, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans and a fee component of the related MSR. We have elected to record these investments at fair value. We recognize income from our servicer advance investments when earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income (loss). Our servicer advance investments are marked-to-market on a recurring basis with changes in the fair value reported in Investment fair value changes, net on our consolidated statements of income (loss). See Note 11 for further discussion on our servicer advance 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, net 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, based on availability of financial information from investees, 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). Excess MSRs Our excess MSR investments represent the right to receive a portion of mortgage servicing cash flows in excess of amounts paid for the underlying mortgage loans to be serviced. As owners of excess MSRs, we are not required to be a licensed servicer, and we are not required to assume any servicing duties, advance obligations or liabilities associated with the loan pool underlying the MSR. We have elected to record these investments at fair value. We recognize income from excess MSRs when it is earned and deemed collectible and record the income as a component of Other interest income in our consolidated statements of income (loss). Changes in fair value are recurring and are reported through our consolidated statements of income (loss) in Investment fair value changes, net. See Note 11 for further discussion on excess MSRs. MSRs We recognize MSRs through the retention of servicing rights associated with residential mortgage loans that we acquired and subsequently transferred to third parties when the transfer meets the GAAP criteria for sale accounting, or through the direct acquisition of MSRs sold by third parties. See Note 11 for further discussion on MSRs.
Cash and Cash Equivalents	Cash and cash equivalents include non-restricted cash and highly liquid investments with original maturities of three months or less and money market fund investments which are generally invested in U.S. government securities and are available to us on a daily basis. The Company maintains its cash and cash equivalents with major financial institutions. Accounts at these institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 for each bank. The Company is exposed to credit risk for amounts held in excess of the FDIC limit. The Company does not anticipate nonperformance by these institutions
Restricted Cash	Restricted cash primarily includes cash held at our consolidated Servicing Investment entities, and cash associated with our risk-sharing transactions with Fannie Mae and Freddie Mac ("the Agencies"), as well as cash collateral for certain consolidated securitization entities.
Goodwill and Intangible Assets	Significant judgment is required to estimate the fair value of intangible assets and in assigning their estimated useful lives. Accordingly, we typically seek the assistance of independent third-party valuation specialists for significant intangible assets. The fair value estimates are based on available historical information and on future expectations and assumptions we deem reasonable. We generally use an income-based valuation method to estimate the fair value of intangible assets, which discounts expected future cash flows to present value using estimates and assumptions we deem reasonable. Determining the estimated useful lives of intangible assets also requires judgment. Our assessment as to which intangible assets are deemed to have finite or indefinite lives is based on several factors including economic barriers of entry for the acquired business, retention trends, and our operating plans, among other factors. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis and reviewed for impairment if indicators are present. Additionally, useful lives are evaluated each reporting period to determine if revisions to the remaining periods of amortization are warranted. Goodwill is tested for impairment annually or more frequently if indicators of impairment exist. We have elected to make the first day of our fiscal fourth quarter the annual impairment assessment date for goodwill. Pursuant to our adoption of ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" in the first quarter of 2020, we modified our goodwill impairment testing policy. We first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If, based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value, we measure the fair value of the reporting unit and record a goodwill impairment charge for the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of the goodwill. Any such impairment charges would be recorded through Other expenses on our consolidated statements of income (loss).
Derivative Financial Instruments	Derivative financial instruments we typically utilize include swaps, swaptions, financial futures contracts, and “To Be Announced” (“TBA”) contracts. These derivatives are primarily used to manage interest rate risk associated with our operations. In addition, we enter into certain residential loan purchase commitments (“LPCs”) and interest rate lock commitments ("IRLCs") that are treated as derivatives for financial reporting purposes. All derivative financial instruments are recorded at their estimated fair value on our consolidated balance sheets. Derivatives with positive fair values to us are reported as assets, and derivatives with negative fair values to us are reported as liabilities. We classify each derivative as either (i) a trading instrument (no specific hedging designation for financial reporting purposes) or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). Changes in the fair values of derivatives accounted for as trading instruments, including any associated interest income or expense, are recorded in our consolidated statements of income (loss) through Other income, net if they are used to manage risks associated with our MSR investments, through Mortgage banking activities , net if they are used to manage risks associated with our mortgage banking activities, or through Investment fair value changes, net if they are used to manage risks associated with our investments. Valuation changes related to residential LPCs and IRLCs are included in Mortgage banking activities, net on our consolidated statements of income (loss). Changes in the fair values of derivatives accounted for as cash flow hedges, to the extent they are effective, are recorded in Accumulated other comprehensive (loss) income, a component of equity on our consolidated balance sheets. Interest income or expense, and any ineffectiveness associated with these derivatives, are recorded as a component of net interest income in our consolidated statements of income (loss). We measure the effective portion of cash flow hedges by comparing the change in fair value of the expected future variable cash flows of the derivative hedging instruments with the change in fair value of the expected future variable cash flows of the hedged item. We will discontinue a designated cash flow hedge relationship if (i) we determine that the hedging derivative is no longer expected to be effective in offsetting changes in the cash flows of the designated hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a cash flow hedge; or (iv) it is probable that a forecasted transaction associated with the hedged item will not occur by the end of the originally specified time period. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in accumulated other comprehensive income and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Swaps and Swaptions Interest rate swaps are agreements in which (i) one counterparty exchanges a stream of fixed interest payments for another counterparty’s stream of variable interest cash flows; or (ii) each counterparty exchanges variable interest cash flows that are referenced to different indices. Interest rate swaptions are agreements that provide the owner the right but not the obligation to enter into an underlying interest rate swap with a counterparty in the future. We enter into swaps and swaptions primarily to reduce significant changes in our income or equity caused by interest rate volatility. Certain of these interest rate agreements may be designated as cash flow hedges. Interest Rate Futures Interest rate futures are futures contracts based on U.S. Treasury notes, U.S. dollar-denominated interest rate swaps, or U.S. dollar-denominated interest rate indices. TBA Agreements TBA agreements are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. We purchase or sell these derivatives to offset - to varying degrees - changes in the values of mortgage products for which we have exposure to interest rate volatility. Loan Purchase Commitments We use the term LPCs to refer to agreements with third-party residential loan originators to purchase residential loans at a future date that qualify as a derivative under GAAP. LPCs are recorded at their estimated fair values on our consolidated balance sheets and changes in fair value are recurring and are reported through our consolidated statements of income (loss) in Mortgage banking activities, net.
Deferred Tax Assets and Liabilities	Our deferred tax assets/liabilities are generated by temporary differences in GAAP income and taxable income at our taxable REIT subsidiaries. These differences generally reflect differing accounting treatments for GAAP and tax purposes, such as accounting for mortgage servicing rights, security discount and premium amortization, credit losses, asset impairments, and certain valuation estimates. As a result of these differences, we may recognize taxable income in periods prior to when we recognize income for GAAP purposes. When this occurs, we pay the tax liability as required and establish a deferred tax asset. As the income is subsequently realized in future periods for GAAP purposes, the deferred tax asset is reduced. We may also recognize GAAP income in periods prior to when we recognize income for tax purposes. When this occurs, we establish a deferred tax liability. As the income is subsequently realized in future periods for tax purposes, the deferred tax liability is reduced. We may also record deferred tax assets/liabilities resulting from differences in GAAP basis and tax basis of assets and liabilities acquired in a business combination at our taxable REIT subsidiaries. These deferred tax assets/liabilities generally do not affect our GAAP income at the time of establishment as the offsetting accounting entry is recorded in GAAP goodwill. They also do not generally affect GAAP income when they are subsequently realized, as the deferred tax provision or benefit resulting from the realization is offset by a corresponding current tax benefit or provision.
Other Assets and Other Liabilities	Other assets primarily consists of accrued interest receivable, investment receivable, deferred tax assets, REO, operating lease right-of-use assets, margin receivable, and fixed assets and leasehold improvements. Other liabilities primarily consists of accrued compensation, margin payable, accrued interest payable, payable to non-controlling interests, guarantee obligations, operating lease liabilities, deferred tax liabilities, and residential loan and MSR repurchase reserves. See Note 13 for further discussion. Accrued Interest Receivable Accrued interest receivable includes interest that is due and payable to us and deemed collectible. Cash interest is generally received within thirty days of recording the receivable. For financial assets where we have elected the fair value option, the associated accrued interest receivable on these assets is measured at fair value. For financial assets where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values. Investment Receivable Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from business purpose loans and fees receivable from servicer advance investments. Margin Receivable and Payable Margin receivable and payable result from margin calls between us and our derivatives, master repurchase agreements, and warehouse facilities counterparties, whereby we or the counterparty were required to post collateral. Agency Risk-Sharing - Other Assets and Liabilities During 2014 and 2015, we entered into various risk-sharing arrangements with Fannie Mae and Freddie Mac. Under these arrangements, we committed to assume the first 1.00% or 2.25% (depending on the arrangement) of losses realized on reference pools of conforming residential mortgage loans that we acquired and then sold to the Agencies. As part of these risk-sharing arrangements, during the 10-year term of our first Fannie Mae arrangement, we receive monthly cash payments from Fannie Mae based on the monthly outstanding unpaid principal balance of the reference pool of loans, and for our Freddie Mac and our subsequent Fannie Mae arrangements, the Agencies charged us a reduced guarantee fee for the reference loans we delivered to them in exchange for mortgage-backed securities, which we then sold. Under these arrangements we are required to pledge assets to the Agencies to collateralize our risk-sharing commitments to them throughout the terms of the arrangements. These pledged assets are held by a third-party custodian for the benefit of the Agencies. To the extent approved losses are incurred, the custodian will transfer collateral to the Agencies. As a result of these transactions, we recorded restricted cash, “pledged collateral” in the other assets line item, and “guarantee obligations” in the other liabilities line item, on our consolidated balance sheets. In addition, for the first Fannie Mae transaction, we recorded a “guarantee asset” in the other assets line item on our consolidated balance sheets. The guarantee obligations represent our commitments to assume losses under these arrangements. We amortize the guarantee obligations over the 10-year terms of the arrangements based primarily on changes in the outstanding unpaid principal balance of loans in the reference pools, with a portion of the liabilities treated as a credit reserve that is not amortized into income. In addition, each period we assess the need for a separate loss allowance related to these arrangements, based on our estimate of credit losses inherent in the reference pools of loans. Income from cash payments received under the first Fannie Mae risk-sharing arrangement and income related to the amortization of the guarantee obligations of all three arrangements are recorded in Other income, net and market valuation changes of the guarantee asset are recorded in Investment fair value changes, net on our consolidated statements of income (loss). Our consolidated balance sheets include assets of the special purpose entities ("SPEs") associated with these risk-sharing arrangements (i.e., the "pledged collateral" referred to above) that can only be used to settle obligations of these SPEs and liabilities of these SPEs for which the creditors of these SPEs (the Agencies) do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of such SPEs totaled $30 million and $34 million, respectively, and liabilities of such SPEs totaled $6 million and $7 million, respectively. See Note 17 for further discussion on loss contingencies — risk-sharing. REO
Accrued Interest Payable	Accrued Interest Payable Accrued interest payable includes interest that is due and payable to third parties. Interest is generally paid within one to three months of recording the payable, based upon our remittance requirements, and is paid semi-annually for our convertible and exchangeable debt. For borrowings where we have elected the fair value option, the associated accrued interest on these liabilities is measured at fair value. For financial liabilities where we have not elected the fair value option, the associated accrued interest carrying values approximate fair values.
Leases - Asset and Liabilities	Lease - Asset and LiabilitiesUpon adoption of ASU 2016-02, "Leases," in 2019, we recorded operating lease liabilities and operating lease right-of-use assets on our consolidated balance sheets. The operating lease liabilities are equal to the present value of our remaining lease payments discounted at our incremental borrowing rate and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for our deferred rent liabilities at the adoption of this accounting standard. As lease payments are made, the operating lease liabilities are reduced to the present value of the remaining lease payments and the operating lease right-of-use assets are reduced by the difference between the lease expense (straight-lined over the lease term) and the theoretical interest expense amount (calculated using the incremental borrowing rate).
Payable to Non-Controlling Interests	Payable to non-controlling interests includes amounts payable to third parties, representing their interest in our consolidated Servicing Investment and HEI securitization entities.
Short-Term Debt	Short-term debt includes borrowings that expire within one year with various counterparties under master repurchase agreements, warehouse financing facilities, and other forms of borrowings. These borrowings are typically collateralized by cash, loans, HEIs, or securities, and in some cases may be unsecured, such as the current portion of long-term debt. If the value (as determined by the applicable counterparty) of the collateral securing those borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral and pursue any outstanding debt amount from us. Short-term debt also includes non-recourse short-term borrowings used to finance servicer advance investments.
Asset-Backed Securities Issued	ABS issued represents asset-backed securities issued through the Legacy Sequoia, Sequoia, Freddie Mac K-Series, Freddie Mac SLST, CAFL, and HEI securitization entities. Assets at these entities are held in the custody of securitization trustees and are not owned by Redwood. These trustees collect principal and interest payments (less servicing and related fees) from the assets and make corresponding principal and interest payments to the ABS investors. In accordance with accounting guidance for CFEs, we account for the ABS issued under certain of our consolidated entities at fair value, with periodic changes in fair value recorded in Investment fair value changes, net on our consolidated statements of income (loss). In 2021 and 2022, we consolidated the assets and liabilities of securitization entities formed in connection with the securitization of CoreVest BPL bridge loans. In 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 account for the ABS issued by the CAFL bridge securitization trusts and the re-securitization trust at amortized cost.
Long-Term Debt	Recourse Subordinate Securities Financing Facilities Borrowings under our recourse subordinate securities financing facilities are secured by real estate securities and carried at unpaid principal balance net of any unamortized deferred issuance costs. Interest on these facilities is paid monthly. See Note 16 for further discussion on our subordinate securities financing facilities. Non-Recourse Business Purpose Loan Financing Facilities Borrowings under our non-recourse business purpose loan financing facilities are secured by BPL bridge loans and other BPL investments and carried at unpaid principal balance net of any unamortized deferred issuance costs. Interest on these facilities is paid monthly. See Note 16 for further discussion on our non-recourse business purpose loan financing facilities. Recourse Business Purpose Loan Financing Facilities Borrowings under our recourse business purpose loan financing facilities are secured by BPL term and bridge loans and carried at unpaid principal balance net of any unamortized deferred issuance costs. Interest on these facilities is paid monthly. See Note 16 for further discussion on our recourse business purpose loan financing facilities. Convertible Notes Convertible notes include unsecured convertible and exchangeable debt that are carried at their unpaid principal balance net of any unamortized deferred issuance costs. Interest on the notes is payable semiannually until such time the notes mature or are converted or exchanged into shares. If converted or exchanged by a holder, the holder of the notes would receive shares of our common stock. Our convertible notes are initially classified as long-term based on their original maturities, and are reclassified to short-term debt when their remaining term becomes less than one year. Trust Preferred Securities and Subordinated Notes Trust preferred securities and subordinated notes are carried at their unpaid principal balance net of any unamortized deferred issuance costs. This long-term debt is unsecured and interest is paid quarterly until it is redeemed in whole or matures at a future date. FHLBC Borrowings
Equity	Accumulated Other Comprehensive Income (Loss) Net unrealized gains and losses on real estate securities available-for-sale and interest rate agreements designated as cash flow hedges are reported as components of Accumulated other comprehensive income on our consolidated statements of changes in stockholders' equity and our consolidated balance sheets. Net unrealized gains and losses on securities and interest rate agreements held by our taxable REIT subsidiaries that are reported in other comprehensive income are adjusted for the effects of taxation and may create deferred tax assets or liabilities. Earnings per Common Share Basic earnings per common share (“EPS”) is computed by dividing net income allocated to common shareholders by the weighted average common shares outstanding. Net income allocated to common shareholders represents net income less income allocated to participating securities (as described herein). Diluted EPS is computed by dividing income allocated to common shareholders by the weighted average common shares outstanding plus amounts representing the dilutive effect of share-based payment awards. In addition, if the assumed conversion or exchange of convertible or exchangeable debt into common shares is dilutive, diluted EPS is adjusted by adding back the periodic interest expense (net of any tax effects) associated with dilutive convertible or exchangeable debt to net income and adding the shares issued in an assumed conversion or exchange to the diluted weighted average share count.
Incentive Plans	In May 2020, our shareholders approved an amendment to the 2014 Redwood Trust, Inc. Incentive Plan (“Incentive Plan”) for executive officers, employees, and non-employee directors, which increased the number of shares available under the Incentive Plan. The Incentive Plan provides for the grant of restricted stock, deferred stock, deferred stock units, performance-based awards (including performance stock units), dividend equivalents, stock payments, restricted stock units, and other types of awards to eligible participants. Long-term incentive awards granted under the Incentive Plan generally vest over a three Employee Stock Purchase Plan In 2013, our shareholders approved an amendment to our previously amended 2002 Redwood Trust, Inc. Employee Stock Purchase Plan (“ESPP”) to increase the number of shares available under the ESPP. The purpose of the ESPP is to give our employees an opportunity to acquire an equity interest in the Company through the purchase of shares of common stock at a discount. The ESPP allows eligible employees to purchase common stock at 85% of its fair value, subject to certain limits. Fair value as defined under the ESPP is the lesser of the closing market price of the common stock on the first day of the calendar year or the last day of the calendar quarter. Executive Deferred Compensation Plan In 2018, our Board of Directors approved an amendment to our 2002 Executive Deferred Compensation Plan (“EDCP”) to increase the number of shares available to non-employee directors to defer certain cash payments and dividends into DSUs. The EDCP allows eligible employees and directors to defer portions of current salary and certain other forms of compensation. The Company matches some deferrals. Compensation deferred under the EDCP is recorded as a liability on our consolidated balance sheets. The EDCP allows for the investment of deferrals in either an interest crediting account or DSUs. 401(k) Plan
Taxes	We have elected to be taxed as a REIT under the Internal Revenue Code and the corresponding provisions of state law. To qualify as a REIT we must distribute at least 90% of our annual REIT taxable income to shareholders (not including taxable income retained in our taxable REIT subsidiaries) within the time frame set forth in the Internal Revenue Code and also meet certain other requirements related to assets, income, and stock ownership. We assess our tax positions for all open tax years and record tax benefits only if tax positions meet a more-likely-than-not threshold in accordance with GAAP guidance on accounting for uncertain tax positions. We classify interest and penalties on material uncertain tax positions as interest expense and general and administrative expenses, respectively, in our consolidated statements of income (loss).
Recent Accounting Pronouncements	Newly Adopted Accounting Standard Updates ("ASUs") In December 2022, the FASB issued ASU 2022-06, "Reference rate reform (topic 848) - Deferral of the sunset date of topic 848." This new guidance defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. 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. We adopted this new guidance by the required date and accounted for our June 2022 issuance of convertible notes in accordance with this guidance. Under this new guidance, and based on the provisions of this specific series of convertible notes, the calculation of dilutive shares under the "if-converted" method differs from our other outstanding series of convertible notes. Other Recent Accounting Pronouncements Pending Adoption In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 was issued to (1) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the accounting and disclosure requirements of ASU 2022-03 and we plan to adopt this new guidance by the required date. We do not anticipate that this update will have a material impact on our financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the current expected credit loss ("CECL") model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. 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 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method," which will expand companies' abilities to hedge the benchmark interest rate risk of portfolios of financial assets (or beneficial interests) in a fair value hedge. The ASU expands the use of the portfolio layer method (previously referred to as the last-of-layer method) to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. The ASU also permits both prepayable and non-prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. The ASU further requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. 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 December 31, 2022, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. We have an established cross-functional group that has evaluated our exposure to LIBOR, reviewed relevant contracts and has monitored regulatory updates to assess the potential impact to our business, processes and technology from the ultimate full cessation of LIBOR in 2023, and has established a LIBOR transition plan to facilitate an orderly transition to alternative reference rates. We continue to remain on track with our LIBOR transition plan, which requires different solutions depending on the underlying asset or liability with LIBOR exposure. At December 31, 2022, our primary LIBOR exposure included the following: $745 million of BPL bridge loans and $140 million of trust preferred securities and subordinated notes debt. In early 2022 , we began benchmarking all newly originated BPL bridge loans to SOFR. The LIBOR-indexed BPL bridge loans we have outstanding have fallback provisions for benchmark replacement, and given their short duration, we also expect most of them to be repaid before the LIBOR cessation date. Additionally, as a result of legislation that was passed in the state of New York, our trust preferred securities and subordinated notes are expected to convert to SOFR upon the cessation of LIBOR.
Balance Sheet Netting	Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Assets Acquired and Liabilities Assumed	The following table summarizes our purchase price allocations related to the acquisition of Riverbend through December 31, 2022. Table 2.1 – Purchase Price Allocations (In Thousands) Riverbend Acquisition Date July 1, 2022 Purchase price: Cash $ 44,126 Provisional consideration payable 153 Total consideration $ 44,279 Allocated to: Business purpose loans, at fair value $ 59,748 Other investments 2,443 Cash and cash equivalents 3,490 Other assets 12,982 Goodwill 23,373 Intangible assets 13,300 Total assets acquired 115,336 Short-term debt, net 67,423 Accrued expenses and other liabilities 3,634 Total liabilities assumed 71,057 Total net assets acquired $ 44,279
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 December 31, 2022 and 2021. Table 2.2 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at December 31, 2022 Carrying Value at December 31, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (21,547) $ 34,753 7 Broker network 18,100 (13,877) 4,223 5 Non-compete agreements 11,400 (9,817) 1,583 3 Tradenames 4,400 (4,067) 333 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (53,708) $ 40,892 6 Intangible Assets at Acquisition Accumulated Amortization at December 31, 2021 Carrying Value at December 31, 2021 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (14,291) $ 31,009 7 Broker network 18,100 (10,257) 7,843 5 Non-compete agreements 9,500 (7,597) 1,903 3 Tradenames 4,000 (3,194) 806 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (39,739) $ 41,561 6
Finite-lived Intangible Assets Amortization Expense	Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year (In Thousands) December 31, 2022 2023 $ 12,429 2024 9,412 2025 8,426 2026 6,696 2027 1,571 2028 and thereafter 2,358 Total Future Intangible Asset Amortization $ 40,892
Schedule of Goodwill	Table 2.4 – Goodwill - Activity Year Ended December 31, (In Thousands) 2022 2021 Beginning Balance $ — $ — Goodwill recognized from acquisition 23,373 — Impairment — — Ending Balance $ 23,373 $ —
Pro Forma Information	Table 2.5 – Unaudited Pro Forma Financial Information Year Ended December 31, (In Thousands) 2022 2021 Supplementary pro forma information: Net interest income $ 159,404 $ 151,982 Non-interest (loss) income (154,934) 405,092 Net (loss) income (161,599) 322,959

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Offsetting of Financial Assets, Liabilities, and Collateral	The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at December 31, 2022 and 2021. Table 3.1 – Offsetting of Financial Assets, Liabilities, and Collateral Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2022 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 14,625 $ — $ 14,625 $ — $ (5,944) $ 8,681 TBAs 1,893 — 1,893 (1,873) — 20 Futures 3,976 — 3,976 (57) — 3,919 Total Assets $ 20,494 $ — $ 20,494 $ (1,930) $ (5,944) $ 12,620 Liabilities (2) Interest rate agreements $ — $ — $ — $ — $ — $ — TBAs (16,784) — (16,784) 1,873 4,518 (10,393) Futures (57) — (57) 57 — — Loan warehouse debt (224,695) — (224,695) 224,695 — — Total Liabilities $ (241,536) $ — $ (241,536) $ 226,625 $ 4,518 $ (10,393) Table 3.1 – Offsetting of Financial Assets, Liabilities, and Collateral (continued) 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, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 18,929 $ — $ 18,929 $ (1,251) $ (16,046) $ 1,632 TBAs 2,880 — 2,880 (633) (704) 1,543 Futures 25 — 25 (25) — — Total Assets $ 21,834 $ — $ 21,834 $ (1,909) $ (16,750) $ 3,175 Liabilities (2) Interest rate agreements $ (1,251) $ — $ (1,251) $ 1,251 $ — $ — TBAs $ (658) $ — $ (658) $ 633 $ 15 $ (10) Futures (905) — (905) 25 880 — Loan warehouse debt (572,720) — (572,720) 572,720 — — Total Liabilities $ (575,534) $ — $ (575,534) $ 574,629 $ 895 $ (10) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, we have pledged excess cash collateral or financial assets to a counterparty (which, in certain circumstances, may 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, these excess amounts are excluded from the table; they are separately reported in our consolidated balance sheets as assets or liabilities, respectively.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs December 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 184,932 $ 3,190,417 $ — $ 1,457,058 $ — $ — $ — $ 4,832,407 Business purpose loans, held-for-investment — — 3,461,367 — — — — 3,461,367 Consolidated Agency multifamily loans — — — — 424,551 — — 424,551 Home equity investments — — — — — — 132,627 132,627 Other investments — — — — — 301,213 — 301,213 Cash and cash equivalents — — 710 — — 12,765 — 13,475 Restricted cash 69 73 26,296 — — — 3,424 29,862 Accrued interest receivable 284 11,227 18,102 5,144 1,293 342 — 36,392 Other assets 637 — 14,265 2,898 — 7,547 50 25,397 Total Assets $ 185,922 $ 3,201,717 $ 3,520,740 $ 1,465,100 $ 425,844 $ 321,867 $ 136,101 $ 9,257,291 Short-term debt $ — $ — $ — $ — $ — $ 206,510 $ — $ 206,510 Accrued interest payable 282 8,880 10,918 3,561 1,167 492 — 25,300 Accrued expenses and other liabilities — 81 4,559 — — 24,745 22,329 51,714 Asset-backed securities issued 184,191 2,971,109 3,115,807 1,222,150 392,785 — 100,710 7,986,752 Total Liabilities $ 184,473 $ 2,980,070 $ 3,131,284 $ 1,225,711 $ 393,952 $ 231,747 $ 123,039 $ 8,270,276 Value of our investments in VIEs (1) 1,285 219,299 385,927 237,807 31,767 90,120 13,062 979,267 Number of VIEs 20 17 19 3 1 3 1 64 Table 4.1 – Assets and Liabilities of Consolidated VIEs (Continued) December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Consolidated Agency multifamily loans — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) 2,634 245,417 339,419 301,795 31,657 102,540 10,451 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, represents the fair value of our economic interests in the VIEs only for consolidated VIEs we account for under the CFE election. CAFL includes BPL term loan securitizations we account for under the CFE election and two BPL bridge loan securitizations for which we did not make the CFE election. As of December 31, 2022 and December 31, 2021, the fair value of our interests in the CAFL Term securitizations were $304 million and $302 million, respectively, and the remaining values were associated with our interests in the CAFL Bridge securitizations, for which the ABS issued is carried at amortized historical cost. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of December 31, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $323 million and $445 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the years ended December 31, 2022, 2021 and 2020. Table 4.2 – Income (Loss) from Consolidated VIEs Year Ended December 31, 2022 Legacy Sequoia CAFL Freddie Mac Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 5,672 $ 126,120 $ 248,220 $ 65,821 $ 18,938 $ 31,185 $ — $ 495,956 Interest expense (5,206) (111,060) (184,069) (52,901) (17,407) (9,570) — (380,213) Net interest income 466 15,060 64,151 12,920 1,531 21,615 — 115,743 Non-interest income Investment fair value changes, net (1,302) (23,818) (34,749) (76,777) 110 (12,953) 2,915 (146,574) Other income — — 1,014 — — — — 1,014 Total non-interest income, net (1,302) (23,818) (33,735) (76,777) 110 (12,953) 2,915 (145,560) General and administrative expenses — — — — — (189) — (189) Other expenses — — — — — (1,695) — (1,695) Income (Loss) from Consolidated VIEs $ (836) $ (8,758) $ 30,416 $ (63,857) $ 1,641 $ 6,778 $ 2,915 $ (31,701) Year Ended December 31, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 4,709 $ 74,025 $ 207,202 $ 76,287 $ 19,266 $ 18,803 $ — $ 400,292 Interest expense (3,040) (59,949) (160,618) (64,635) (17,686) (4,867) — (310,795) Net interest income 1,669 14,076 46,584 11,652 1,580 13,936 — 89,497 Non-interest income Investment fair value changes, net (1,558) 14,176 8,521 62,374 11,599 (5,209) 218 90,121 Other income — — 72 — — — — 72 Total non-interest income, net (1,558) 14,176 8,593 62,374 11,599 (5,209) 218 90,193 General and administrative expenses — — — — — (283) — (283) Other expenses — — — — — (1,689) — (1,689) Income from Consolidated VIEs $ 111 $ 28,252 $ 55,177 $ 74,026 $ 13,179 $ 6,755 $ 218 $ 177,718 Year Ended December 31, 2020 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 9,061 $ 87,093 $ 136,950 $ 85,609 $ 54,813 $ 17,665 $ — $ 391,191 Interest expense (5,945) (73,643) (105,732) (66,859) (51,521) (6,441) — (310,141) Net interest income 3,116 13,450 31,218 18,750 3,292 11,224 — 81,050 Non-interest income Investment fair value changes, net (1,512) (13,244) (39,574) (21,160) (81,039) (11,327) — (167,856) Total non-interest income, net (1,512) (13,244) (39,574) (21,160) (81,039) (11,327) — (167,856) General and administrative expenses — — — — — (867) — (867) Other expenses — — — — — 193 — 193 Income (Loss) from Consolidated VIEs $ 1,604 $ 206 $ (8,356) $ (2,410) $ (77,747) $ (777) $ — $ (87,480)
Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents information related to securitization transaction that occurred during the years ended December 31, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Years Ended December 31, (In Thousands) 2022 2021 Principal balance of loans transferred $ — $ 1,231,803 Trading securities retained, at fair value — 7,774 AFS securities retained, at fair value — 1,600
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the years ended December 31, 2022 and 2021 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 Years Ended December 31, (In Thousands) 2022 2021 Proceeds from new transfers $ — $ 1,266,063 MSR fees received 3,069 5,003 Funding of compensating interest, net (45) (160) Cash flows received on retained securities 22,866 47,596
MSR Assumptions Related to 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 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Year Ended December 31, 2022 Year Ended December 31, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 11 % 11 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.23 % 0.23 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood Summary	The following table presents additional information at December 31, 2022 and 2021, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) December 31, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 28,722 $ 18,214 Subordinate securities, classified as AFS 74,367 127,542 Mortgage servicing rights 11,589 6,450 Maximum loss exposure (1) $ 114,678 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,052,922 $ 4,959,234 Principal balance of loans 30+ days delinquent 27,739 30,594 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.
Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at December 31, 2022 and 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood December 31, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2022 $ 11,589 $ 28,722 $ 74,367 Expected life (in years) (2) 7 7 16 Prepayment speed assumption (annual CPR) (2) 8 % 10 % 8 % Decrease in fair value from: 10% adverse change $ 311 $ 970 $ 386 25% adverse change 779 2,344 907 Discount rate assumption (2) 11 % 12 % 9 % Decrease in fair value from: 100 basis point increase $ 430 $ 980 $ 7,198 200 basis point increase 832 1,894 13,394 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A N/A $ 31 25% higher losses N/A N/A 76 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A N/A $ 1,528 25% higher losses N/A N/A 3,819 (1) Senior securities included $29 million and $18 million of interest-only securities at December 31, 2022 and 2021, respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
Loan Transfers Accounted for as Secured Borrowings	The following table presents a summary of our interests in third-party VIEs at December 31, 2022 and 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) December 31, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 145 $ 3,572 Subordinate 137,241 228,083 Total Mortgage-Backed Securities 137,386 231,655 Excess MSR 7,082 10,400 Total Investments in Third-Party Sponsored VIEs $ 144,468 $ 242,055

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Carrying Values and Estimated Fair Values of Assets and Liabilities	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at December 31, 2022 and 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 780,781 $ 780,781 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment, at fair value 4,832,407 4,832,407 5,747,150 5,747,150 Business purpose loans, held-for-sale, at fair value 364,073 364,073 358,309 358,309 Business purpose loans, held-for-investment, at fair value 4,968,513 4,968,513 4,432,680 4,432,680 Consolidated Agency multifamily loans, at fair value 424,551 424,551 473,514 473,514 Real estate securities, at fair value 240,475 240,475 377,411 377,411 Servicer advance investments (1) 269,259 269,259 350,923 350,923 MSRs (1) 25,421 25,421 12,438 12,438 Excess MSRs (1) 39,035 39,035 44,231 44,231 HEIs 403,462 403,462 192,740 192,740 Other investments (1) 6,155 6,155 12,663 12,663 Cash and cash equivalents 258,894 258,894 450,485 450,485 Restricted cash 70,470 70,470 80,999 80,999 Derivative assets 20,830 20,830 26,467 26,467 REO (2) 6,455 4,185 36,126 39,272 Margin receivable (2) 13,802 13,802 7,269 7,269 Liabilities Short-term debt (3) $ 1,853,664 $ 1,853,664 $ 2,177,362 $ 2,177,362 Margin payable (4) 5,944 5,944 24,368 24,368 Guarantee obligations (4) 6,344 4,738 7,459 7,133 HEI securitization non-controlling interest 22,329 22,329 17,035 17,035 Derivative liabilities 16,855 16,855 3,317 3,317 ABS issued net at fair value 7,424,132 7,424,132 8,843,147 8,843,147 at amortized cost 562,620 524,768 410,410 410,471 Other long-term debt, net (5) 1,077,200 1,069,946 988,483 989,570 Convertible notes, net (5) 693,473 638,049 513,629 537,300 Trust preferred securities and subordinated notes, net (5) 138,767 83,700 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) Short-term debt excludes short-term convertible notes, which are included below under "Convertible notes, net." (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are primarily included in Long-Term debt, net on our consolidated balance sheets. Convertible notes, net also includes convertible notes classified as short-term debt. See Note 14
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at December 31, 2022 and 2021, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2022 Carrying Value Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,613,157 $ — $ — $ 5,613,157 Business purpose loans 5,332,586 — — 5,332,586 Consolidated Agency multifamily loans 424,551 — — 424,551 Real estate securities 240,475 — — 240,475 Servicer advance investments 269,259 — — 269,259 MSRs 25,421 — — 25,421 Excess MSRs 39,035 — — 39,035 HEIs 403,462 — — 403,462 Other investments 6,155 — — 6,155 Derivative assets 20,830 5,869 14,625 336 Liabilities HEI securitization non-controlling interest $ 22,329 $ — $ — $ 22,329 Derivative liabilities 16,855 16,841 — 14 ABS issued 7,424,132 — — 7,424,132 Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Consolidated Agency multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other Investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 Liabilities HEI securitization non-controlling interest $ 17,035 $ — $ — $ 17,035 Derivative liabilities 3,317 1,563 1,251 503 ABS issued 8,843,147 — — 8,843,147
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Consolidated Agency Multifamily Loans Trading Securities AFS Servicer Advance Investments Excess MSRs HEIs MSRs and Other Investments (In Thousands) Beginning balance - December 31, 2021 $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Acquisitions 3,692,104 181,814 — 5,006 10,000 — — 248,218 8,638 Originations — 2,715,817 — — — — — — — Sales (3,830,318) (495,472) — (31,729) — — — — (3,299) Principal paydowns (866,474) (1,324,640) (7,975) (1,347) (31,390) (70,589) — (42,744) (158) Gains (losses) in net income (loss), net (970,241) (531,947) (40,987) (34,220) 13,660 (11,075) (5,196) 5,248 9,873 Unrealized losses in OCI, net — — — — (66,916) — — — — Other settlements, net (1) (4,312) (3,975) — — — — — — (8,579) Ending balance - December 31, 2022 $ 5,613,157 $ 5,332,586 $ 424,552 $ 108,329 $ 132,146 $ 269,259 $ 39,035 $ 403,462 $ 31,576 Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (continued) Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 1,205,289 Principal paydowns — — (1,394,000) Gains (losses) in net income (loss), net (55,209) 5,294 (1,230,304) Other settlements, net (1) 51,401 — — Ending balance - December 31, 2022 $ 322 $ 22,329 $ 7,424,132 Assets (In Thousands) Residential Business Purpose Loans Consolidated Agency Multifamily Loans Trading AFS Servicer Advance Investments Excess MSRs MSRs and Other Investments Beginning balance - December 31, 2020 $ 4,249,014 $ 4,136,353 $ 492,221 $ 125,667 $ 218,458 $ 231,489 $ 34,418 $ 42,440 $ 27,662 Acquisitions 13,139,907 136,685 — 58,917 19,100 196,583 17,830 155,023 15,215 Originations — 2,150,539 — — — — — — — Sales (8,449,328) (211,113) — (34,802) (4,785) — — — — Principal paydowns (1,360,649) (1,307,566) (7,639) (2,713) (57,953) (76,223) — (19,395) (14,751) Gains (losses) in net income, net 16,688 (77,357) (11,068) 23,550 40,735 (926) (8,017) 13,774 (2,846) Unrealized gains in OCI, net — — — — (8,763) — — — — Other settlements, net (1) (3,234) (36,552) — — — — — 898 (179) Ending balance - December 31, 2021 $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Liabilities (In Thousands) Derivatives (2) HEI Securitization Non-Controlling Interest ABS Beginning balance - December 31, 2020 $ 14,450 $ — $ 6,900,362 Acquisitions — 16,639 4,202,070 Principal paydowns — — (1,922,313) Gains (losses) in net income, net 10,437 396 (336,972) Other settlements, net (1) (20,757) — — Ending balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 (1) Other settlements, net for residential and business purpose loans represents the transfer of loans to REO, for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential and business purpose loans, and for MSRs and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (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 fair value 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 December 31, 2022, 2021, and 2020. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the years ended December 31, 2022, 2021, and 2020 are not included in this presentation. Table 5.4 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at December 31, 2022, 2021, and 2020 Included in Net Income Included in Net Income (Loss) Years Ended December 31, (In Thousands) 2022 2021 2020 Assets Residential loans at Redwood $ (43,019) $ 5,886 $ 1,138 Business purpose loans (31,927) 9,444 9,420 Net investments in consolidated Sequoia entities (1) (25,563) 12,455 (14,646) Net investments in consolidated Freddie Mac SLST entities (1) (76,811) 62,124 (21,220) Net investments in consolidated Freddie Mac K-Series entities (1) 110 11,599 (9,309) Net investments in consolidated CAFL Term entities (1) (34,899) 8,198 (37,062) Net investment in consolidated HEI securitization entity (1) 8,210 614 — Trading securities (34,027) 738 (83,327) Available-for-sale securities (2,540) — (388) Servicer advance investments (11,076) (926) (8,902) MSRs 9,804 629 (17,545) Excess MSRs (5,196) (8,017) (8,302) HEIs at Redwood (670) 212 (1,884) Other investments (901) (6) (285) Loan purchase and interest rate lock commitments 336 4,633 15,027 Liabilities Non-controlling interest in consolidated HEI entity $ (5,294) $ (396) $ — Loan purchase commitments $ (14) $ (503) $ (577) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income (loss) related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at December 31, 2022, 2021, and 2020, which, netted together represent the change in value of our investments at the consolidated VIEs, under CFE election, 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 December 31, 2022 and 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 December 31, 2022 and 2021. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Gain (Loss) for December 31, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2022 Assets Strategic Investments $ 17,600 $ — $ — $ 17,600 $ 9,965 Gain (Loss) for December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 December 31, 2021 Assets REO $ 588 $ — $ — $ 588 $ (217)
Market Valuation Adjustments	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income (loss) for the years ended December 31, 2022, 2021, and 2020. Table 5.6 – Market Valuation Gains and Losses, Net Years Ended December 31, (In Thousands) 2022 2021 2020 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (77,192) $ 73,332 $ (15,477) Residential loan purchase and commitments (54,484) 10,401 56,761 BPL term loans held-for-sale, at fair value (91,025) 63,206 82,169 BPL term loan interest rate lock commitments (666) 666 341 BPL bridge loans 3,026 8,253 (4,998) Trading securities (1) 4,249 (352) (4,535) Risk management derivatives, net 157,444 41,060 (47,779) Total mortgage banking activities, net (2) $ (58,648) $ 196,566 $ 66,482 Investment Fair Value Changes, Net Residential loans held-for-investment at Redwood (called Sequoia loans) $ (16,651) $ 2,812 $ (93,314) Business purpose loans held-for-investment (7,271) (65) (31,435) Trading securities (38,471) 23,935 (226,196) Servicer advance investments (11,075) (925) (8,901) Excess MSRs (5,196) (8,017) (8,302) Net investments in Legacy Sequoia entities (3) (1,302) (1,558) (1,513) Net investments in Sequoia entities (3) (23,818) 14,176 (13,244) Net investments in Freddie Mac SLST entities (3) (76,777) 62,374 (21,160) Net investment in Freddie Mac K-Series entity (3) 110 11,599 (81,039) Net investments in CAFL Term entities (3) (34,899) 10,271 (36,754) Net investments in HEI securitization entities (3) 2,915 218 — HEIs at Redwood (202) 13,207 (1,883) Other investments 13,468 (366) (5,167) Risk management derivatives, net 26,152 — (59,142) Credit (losses) recoveries on AFS securities (2,540) 388 (388) Total investment fair value changes, net $ (175,557) $ 128,049 $ (588,438) Other Income MSRs $ 8,560 $ (3,182) $ (33,409) Other (1,541) — — Risk management derivatives, net — — 13,966 Total other income (4) $ 7,019 $ (3,182) $ (19,443) Total Market Valuation Gains (Losses), Net $ (227,186) $ 321,433 $ (541,399) (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the 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, 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 HEIs, REO and the ABS issued at the entities, which netted together represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election.
Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value	The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments December 31, 2022 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 $ 643,845 Whole loan spread to swap rate 252 - 252 bps 252 bps Called loan dollar price $ 91 - $ 91 $ 91 Jumbo loans committed to sell 136,905 Whole loan committed sales price $ 94 - $ 101 $ 94 Loans held by Legacy Sequoia (2) 184,932 Liability price N/A N/A Loans held by Sequoia (2) 3,190,417 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,457,058 Liability price N/A N/A Business purpose loans: BPL term loans 358,791 Senior credit spread 175 - 275 bps 225 bps Subordinate credit spread 225 - 962 bps 431 bps Senior credit support 36 - 36 % 36 % IO discount rate 9 - 10 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Whole loan spread 275 - 550 bps 361 bps BPL term loans held by CAFL 2,944,984 Liability price N/A N/A BPL bridge loans 2,028,811 Whole loan discount rate 5 - 15 % 10 % Senior credit spread 310 - 310 bps 310 bps Subordinate credit spread 360 - 1,150 bps 665 bps Senior credit support 43 - 43 % 43 % Prepayment rate (annual CPR) — - — % — % Multifamily loans held by Freddie Mac K-Series (2) 424,551 Liability price N/A N/A Trading and AFS securities 240,475 Discount rate 6 - 18 % 10 % Prepayment rate (annual CPR) 5 - 65 % 10 % Default rate — - 14 % 0.5 % Loss severity — - 50 % 26 % CRT dollar price $ 72 - $ 93 $ 84 HEIs 270,835 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (7) - 4 % 3 % HEIs held by HEI securitization entity 132,627 Discount Rate N/A N/A Servicer advance investments 269,259 Discount rate 2 - 5 % 3 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 18 bps 5 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) December 31, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Assets (continued) MSRs $ 25,421 Discount rate 11 - 22 % 11 % Prepayment rate (annual CPR) 4 - 28 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Excess MSRs 39,035 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 18 % Excess mortgage servicing amount 8 - 19 bps 11 bps Residential loan purchase commitments, net 322 Whole loan spread to swap rate 252 - 252 bps 252 bps Pull-through rate 48 - 100 % 94 % Committed sales price $ 101 — $ 101 $ 101 Liabilities ABS issued (2) At consolidated Sequoia entities 3,155,300 Discount rate 4 - 18 % 7 % Prepayment rate (annual CPR) 5 - 23 % 10 % Default rate — - 14 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL Term entities 2,638,183 Discount rate 2 - 23 % 7 % Prepayment rate (annual CPR) — - 3 % 0.2 % Default rate 5 - 23 % 8 % Loss severity 27 - 40 % 30 % At consolidated Freddie Mac SLST entities 1,137,154 Discount rate 5 - 16 % 6 % Prepayment rate (annual CPR) 6 - 7 % 6 % Default rate 13 - 14 % 14 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 392,785 Discount rate 3 - 10 % 5 % At consolidated HEI entities (4) 100,710 Discount rate 9 - 15 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (7) - 4 % 3 % (1) The weighted average input values for all loan types are based on 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 is 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 December 31, 2022, the fair value of securities we owned at the consolidated Sequoia, CAFL Term, Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $219 million, $304 million, $323 million, $32 million, and $13 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)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2022 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 780,781 $ — $ — $ — $ 780,781 Held-for-investment at fair value — 184,932 3,190,417 1,457,058 4,832,407 Total Residential Loans $ 780,781 $ 184,932 $ 3,190,417 $ 1,457,058 $ 5,613,188 December 31, 2021 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans December 31, 2022 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,791 $ — $ 5,282 $ — $ 364,073 Held-for-investment at fair value — 2,944,984 1,507,146 516,383 4,968,513 Total Business Purpose Loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 $ 5,332,586 December 31, 2021 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Twelve Months Ended Twelve Months Ended (In Thousands) BPL Term at Redwood BPL Bridge at Redwood BPL Term at Redwood BPL Bridge at Redwood Principal balance of loans originated $ 1,000,109 $ 1,698,227 $ 1,254,913 $ 894,908 Principal balance of loans acquired (1) 100,349 97,787 68,804 65,315 Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 Fair value of loans transferred (2) 561,218 584,233 1,116,443 358,884 Fair value of loans transferred from HFI to HFS (3) — — 92,455 N/A Mortgage banking activities income (loss) recorded (4) (91,024) 1,881 63,206 7,188 Investment fair value changes recorded (5) — (5,805) — 1,483 (1) BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) 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 year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Year Ended Year Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ (441,318) $ (435) $ (158,081) $ (1,548) . The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021. Table 7.4 – Characteristics of Business Purpose Loans December 31, 2022 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 91 1,131 1,601 1,875 Unpaid principal balance $ 389,846 $ 3,263,421 $ 1,518,427 $ 514,666 Fair value of loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 Weighted average coupon 5.98 % 5.22 % 9.61 % 9.67 % Weighted average remaining loan term (years) 10 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 291,406 N/A $ 579,666 N/A Market value of loans pledged as collateral under long-term debt facilities $ 66,567 N/A $ 897,782 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 16 49 48 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 37,072 $ 34,264 $ 7,328 Fair value of loans with 90+ day delinquencies (3) $ 536 N/A $ 29,663 $ 7,438 Number of loans in foreclosure 1 9 48 48 Unpaid principal balance of loans in foreclosure $ 536 $ 13,686 $ 34,039 $ 7,328 Fair value of loans in foreclosure (3) $ 536 N/A $ 29,438 $ 7,438 December 31, 2021 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (3) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL 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. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent.
Characteristics of Residential Loans Held-For-Sale	The following table summarizes the characteristics of residential loans held-for-sale at December 31, 2022 and 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 994 2,196 Unpaid principal balance $ 822,063 $ 1,813,865 Fair value of loans $ 780,781 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 775,545 $ 1,838,797 Weighted average coupon 5.12 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 208 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — —
Activity of Residential Loans Held-for-Sale	The following table provides the activity of residential loans held-for-sale during the years ended December 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Year Ended December 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 3,704,196 $ 12,916,155 Principal balance of loans sold 3,858,647 8,244,221 Principal balance of loans transferred to HFI 687,192 2,957,694 Net market valuation (losses) gains recorded (2) (93,843) 76,144 (1) For the years ended December 31, 2022 and 2021, includes $102 million and $200 million of loans acquired through calls of three and seven seasoned Sequoia securitizations, respectively. (2) 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 Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment December 31, 2022 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,304 4,624 10,882 Unpaid principal balance $ 204,404 $ 3,847,091 $ 1,719,236 Fair value of loans (2) $ 184,932 $ 3,190,417 $ 1,457,058 Weighted average coupon 4.51 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 30 10 1,211 Unpaid principal balance of loans with 90+ day delinquencies $ 6,824 $ 7,799 $ 209,397 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 11 5 427 Unpaid principal balance of loans in foreclosure $ 1,166 $ 4,654 $ 72,440 Table 6.4 – Characteristics of Residential Loans Held-for-Investment (continued) December 31, 2021 Legacy Sequoia Freddie Mac (Dollars in Thousands) Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans (2) $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.54 % 3.14 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (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 consolidated entities during the years ended December 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Year Ended December 31, 2022 Year Ended December 31, 2021 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 $ 684,491 N/A N/A $ 3,035,100 N/A Net market valuation gains (losses) recorded 12,956 (675,659) (215,687) 12,125 (66,727) (14,735) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Business Purpose Loans (Tables)

Business Purpose Loans (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Summary of Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at December 31, 2022 and 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans December 31, 2022 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 780,781 $ — $ — $ — $ 780,781 Held-for-investment at fair value — 184,932 3,190,417 1,457,058 4,832,407 Total Residential Loans $ 780,781 $ 184,932 $ 3,190,417 $ 1,457,058 $ 5,613,188 December 31, 2021 Legacy Sequoia Freddie Mac (In Thousands) Redwood Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans December 31, 2022 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,791 $ — $ 5,282 $ — $ 364,073 Held-for-investment at fair value — 2,944,984 1,507,146 516,383 4,968,513 Total Business Purpose Loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 $ 5,332,586 December 31, 2021 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 The following table provides the activity of business purpose loans during the years ended December 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Twelve Months Ended Twelve Months Ended (In Thousands) BPL Term at Redwood BPL Bridge at Redwood BPL Term at Redwood BPL Bridge at Redwood Principal balance of loans originated $ 1,000,109 $ 1,698,227 $ 1,254,913 $ 894,908 Principal balance of loans acquired (1) 100,349 97,787 68,804 65,315 Principal balance of loans sold to third parties 429,873 79,608 193,963 9,484 Fair value of loans transferred (2) 561,218 584,233 1,116,443 358,884 Fair value of loans transferred from HFI to HFS (3) — — 92,455 N/A Mortgage banking activities income (loss) recorded (4) (91,024) 1,881 63,206 7,188 Investment fair value changes recorded (5) — (5,805) — 1,483 (1) BPL bridge at Redwood for the year ended December 31, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For BPL term at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL Term securitizations. For BPL bridge at Redwood, represents the transfer of BPL bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of BPL term loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) 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 year ended December 31, 2022, we recorded loan origination fee income of $41 million, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Year Ended Year Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ (441,318) $ (435) $ (158,081) $ (1,548) . The following tables summarize the characteristics of the business purpose loans owned at Redwood at December 31, 2022 and 2021. Table 7.4 – Characteristics of Business Purpose Loans December 31, 2022 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 91 1,131 1,601 1,875 Unpaid principal balance $ 389,846 $ 3,263,421 $ 1,518,427 $ 514,666 Fair value of loans $ 358,791 $ 2,944,984 $ 1,512,428 $ 516,383 Weighted average coupon 5.98 % 5.22 % 9.61 % 9.67 % Weighted average remaining loan term (years) 10 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 291,406 N/A $ 579,666 N/A Market value of loans pledged as collateral under long-term debt facilities $ 66,567 N/A $ 897,782 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 16 49 48 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 37,072 $ 34,264 $ 7,328 Fair value of loans with 90+ day delinquencies (3) $ 536 N/A $ 29,663 $ 7,438 Number of loans in foreclosure 1 9 48 48 Unpaid principal balance of loans in foreclosure $ 536 $ 13,686 $ 34,039 $ 7,328 Fair value of loans in foreclosure (3) $ 536 N/A $ 29,438 $ 7,438 December 31, 2021 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (3) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL 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. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent.
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Consolidated Agency Multifami_2

Consolidated Agency Multifamily Loans (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at December 31, 2022 and 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) December 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 447,193 $ 455,168 Fair value of loans $ 424,551 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding Consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at December 31, 2022 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 years ended December 31, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Year Ended December 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (40,987) $ (11,068) (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.
Geographic Concentration of Loans Recorded on Consolidated Balance Sheet	The following table presents the geographic concentration of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.6 – Geographic Concentration of Residential Loans December 31, 2022 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 26 % 18 % 35 % 14 % Texas 12 % 6 % 12 % 3 % Washington 11 % 1 % 5 % 2 % Colorado 9 % 2 % 6 % 1 % Florida 9 % 13 % 4 % 10 % New York 3 % 11 % 2 % 11 % New Jersey 1 % 5 % 1 % 7 % Illinois 1 % 3 % 3 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 27 % 34 % 30 % 40 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration Held-for-Sale Held-for- Held-for- Held-for-Investment at Freddie Mac SLST California 29 % 18 % 35 % 14 % Texas 11 % 5 % 12 % 3 % Washington 8 % 1 % 5 % 2 % Colorado 7 % 2 % 6 % 1 % Florida 6 % 14 % 4 % 10 % Arizona 5 % 1 % 3 % 2 % New York 2 % 11 % 2 % 10 % New Jersey 1 % 5 % 1 % 7 % Illinois 2 % 3 % 4 % 5 % Maryland 1 % 2 % 2 % 5 % Ohio — % 5 % — % 2 % Other states (none greater than 5%) 28 % 33 % 26 % 39 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.5 – Geographic Concentration of Business Purpose Loans December 31, 2022 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL California 34 % 4 % 2 % 3 % Connecticut 10 % 8 % 4 % 1 % Illinois 6 % 5 % 8 % 3 % New York 5 % 5 % 2 % 3 % Florida 4 % 7 % 6 % 5 % Texas 3 % 16 % 13 % 1 % Alabama 2 % 3 % 6 % 33 % New Jersey 2 % 8 % 7 % 6 % Georgia 2 % 5 % 21 % 14 % Tennessee 1 % 2 % 6 % 2 % Other states (none greater than 5%) 31 % 37 % 25 % 29 % Total 100 % 100 % 100 % 100 % December 31, 2021 Geographic Concentration BPL Term at Redwood BPL Term at CAFL BPL Bridge at Redwood BPL Bridge at CAFL Florida 15 % 7 % 10 % 17 % Texas 11 % 15 % 7 % 13 % Alabama 11 % 3 % 9 % 3 % Connecticut 9 % 6 % 4 % 3 % New Jersey 7 % 8 % 9 % 12 % New York 2 % 2 % 2 % 9 % Georgia 5 % 5 % 20 % 7 % California 5 % 5 % 3 % 5 % Illinois 2 % 5 % 4 % 4 % Tennessee — % 3 % 11 % 2 % Other states (none greater than 5%) 33 % 41 % 21 % 25 % Total 100 % 100 % 100 % 100 % The following table presents the geographic concentration of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.3 – Geographic Concentration of Consolidated Agency Multifamily Loans Geographic Concentration December 31, 2022 December 31, 2021 California 13 % 13 % Florida 13 % 13 % North Carolina 9 % 9 % Oregon 7 % 7 % Hawaii 5 % 5 % Tennessee 5 % 5 % Other states (none greater than 5%) 48 % 48 % Total 100 % 100 %
Loan Product Type and Accompanying Loan Characteristics of Loans	T he following table displays the loan product type and accompanying loan characteristics of residential loans recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 6.7 – Product Types and Characteristics of Residential Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 6.00 % to 6.00% 2032-11 - 2032-11 $ 41 $ — $ — $ 501 to $750 6 3.63 % to 6.50% 2042-04 - 2052-12 3,590 — — $ 751 to $1,000 1 4.25 % to 4.25% 2042-06 - 2042-06 772 — — 8 4,403 — — Fixed loans $ — to $250 25 3.13 % to 5.63% 2026-04 - 2052-06 4,088 — 208 $ 251 to $500 138 3.38 % to 8.25% 2026-12 - 2052-12 57,202 444 — $ 501 to $750 283 2.88 % to 8.25% 2038-09 - 2052-12 186,202 537 — $ 751 to $1,000 286 2.75 % to 9.25% 2042-04 - 2053-01 248,246 1,726 — over $1,000 254 2.88 % to 9.13% 2042-03 - 2053-01 321,922 2,575 — 986 817,660 5,282 208 Total Held-for-Sale 994 $ 822,063 $ 5,282 $ 208 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,070 1.25 % to 6.13% 2022-06 - 2035-11 $ 93,286 $ 3,792 $ 2,607 $ 251 to $500 158 1.25 % to 6.13% 2027-04 - 2035-11 54,904 1,232 1,649 $ 501 to $750 47 1.63 % to 5.38% 2027-05 - 2035-07 28,796 — 1,796 $ 751 to $1,000 13 1.63 % to 6.00% 2028-03 - 2036-03 11,047 929 772 over $1,000 9 1.63 % to 5.63% 2028-06 - 2035-04 14,340 1,048 — 1,297 202,373 7,001 6,824 Hybrid ARM loans: $ — to $250 3 4.63 % to 4.63% 2033-09 - 2033-09 610 — — $ 251 to $500 4 2.88 % to 4.63% 2033-07 - 2034-03 1,421 — — 7 2,031 — — Total HFI at Legacy Sequoia: 1,304 $ 204,404 $ 7,001 $ 6,824 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2022 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ 251 to $500 2 3.50 % to 3.63% 2047-04 - 2049-06 798 — — $ 501 to $750 8 3.38 % to 4.38% 2044-04 - 2049-08 5,370 — 637 $ 751 to $1,000 4 4.00 % to 5.63% 2047-07 - 2048-01 3,294 — — over $1,000 3 4.00 % to 5.00% 2045-07 - 2049-04 3,833 — — 17 13,295 — 637 Fixed loans: $ — to $250 52 2.63 % to 5.25% 2029-04 - 2051-12 $ 9,145 $ — $ — $ 251 to $500 146 2.38 % to 6.75% 2038-04 - 2051-12 61,208 2,348 877 $ 501 to $750 1,884 2.13 % to 6.38% 2031-04 - 2052-01 1,211,531 7,064 1,840 $ 751 to $1,000 1,600 2.13 % to 6.00% 2036-12 - 2052-01 1,396,210 2,425 1,849 over $1,000 925 1.88 % to 5.88% 2036-07 - 2052-01 1,155,702 3,685 2,596 4,607 3,833,796 15,522 7,162 4,624 $ 3,847,091 $ 15,522 $ 7,799 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 8,979 2.00 % to 11.00% 2022-12 2062-11 $ 1,105,116 $ 197,718 $ 120,210 $ 251 to $500 1,867 2.00 % to 7.75% 2036-03 2062-09 593,781 103,339 80,993 $ 501 to $750 35 2.00 % to 5.50% 2045-02 2059-01 19,328 1,038 7,184 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,010 — 1,010 Total Held-for-Investment 10,882 $ 1,719,236 $ 302,095 $ 209,397 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Sale: Hybrid ARM loans $ — to $250 1 1.88 % to 1.88% 2032-11 - 2032-11 $ 45 $ — $ — $ 251 to $500 4 3.25 % to 3.50% 2042-08 - 2042-09 1,880 — — $ 501 to $750 18 2.38 % to 3.63% 2042-04 - 2052-01 11,872 — — $ 751 to $1,000 14 2.50 % to 4.00% 2042-06 - 2052-01 12,288 — — over $1,000 20 2.38 % to 3.88% 2042-01 - 2052-01 25,308 — — 57 51,393 — — Fixed loans $ — to $250 63 3.13 % to 5.00% 2026-04 - 2051-12 11,118 — — $ 251 to $500 133 2.75 % to 5.50% 2026-12 - 2051-11 51,737 — — $ 501 to $750 790 2.50 % to 5.88% 2026-12 - 2052-01 514,785 — 1,093 $ 751 to $1,000 735 2.63 % to 5.63% 2041-07 - 2052-.01 642,372 — — over $1,000 418 2.50 % to 4.75% 2041-10 - 2052-.01 542,460 — 1,830 2,139 1,762,472 — 2,923 Total Held-for-Sale 2,196 $ 1,813,865 $ — $ 2,923 Held-for-Investment at Legacy Sequoia: ARM loans: $ — to $250 1,273 0.38 % to 5.63% 2022-01 - 2035-11 $ 115,437 $ 3,189 $ 2,691 $ 251 to $500 206 0.75 % to 3.88% 2024-05 - 2035-11 71,306 2,831 2,124 $ 501 to $750 68 0.25 % to 4.13% 2027-05 - 2035-07 42,128 555 1,842 $ 751 to $1,000 15 0.75 % to 3.75% 2028-03 - 2036-03 12,868 1,811 825 over $1,000 12 0.88 % to 2.00% 2028-06 - 2035-04 18,668 1,175 — 1,574 260,407 9,561 7,482 Hybrid ARM loans: $ — to $250 3 2.63 % to 2.63% 2033-09 - 2033-10 650 — — $ 251 to $500 4 2.50 % to 2.63% 2033-07 - 2034-03 1,341 — — $ 501 to $750 1 2.50 % to 2.50% 2033-08 - 2033-08 518 — — over $1,000 1 2.63 % to 2.63% 2033-09 - 2033-09 1,140 — — 9 3,649 — — Total HFI at Legacy Sequoia: 1,583 $ 264,056 $ 9,561 $ 7,482 Table 6.7 – Product Types and Characteristics of Residential Loans (continued) December 31, 2021 (In Thousands) Loan Balance Number of Interest Rate (1) Maturity Total 30-89 90+ Held-for-Investment at Sequoia: Hybrid ARM loans $ — to $250 2 5.50 % to 6.75% 2048-03 - 2048-09 $ 397 $ 191 $ — $ 251 to $500 3 3.25 % to 3.63% 2047-04 - 2049-06 1,354 — — $ 501 to $750 8 3.38 % to 4.50% 2044-04 - 2049-08 5,321 — — $ 751 to $1,000 8 3.13 % to 5.00% 2047-06 - 2049-08 6,659 — — over $1,000 7 3.50 % to 5.00% 2044-11 - 2050-01 8,934 — — 28 22,665 191 — Fixed loans: $ — to $250 43 2.75 % to 5.13% 2029-04 - 2051-06 $ 8,630 $ — $ — $ 251 to $500 162 2.50 % to 6.13% 2033-06 - 2051-09 69,442 2,390 462 $ 501 to $750 1,691 2.13 % to 6.75% 2031-04 - 2051-12 1,093,766 10,894 3,498 $ 751 to $1,000 1,497 2.13 % to 6.25% 2036-12 - 2051-11 1,311,640 9,477 4,931 over $1,000 879 1.88 % to 5.88% 2036-07 - 2051-11 1,099,328 8,508 6,233 4,272 3,582,806 31,269 15,124 4,300 $ 3,605,471 $ 31,460 $ 15,124 Held-for-Investment at Freddie Mac SLST: Fixed loans: $ — to $250 9,798 2.00 % to 11.00% 2021-12 2061-10 $ 1,224,173 $ 222,541 $ 114,622 $ 251 to $500 2,141 2.00 % to 7.75% 2035-08 2059-08 681,885 114,360 91,149 $ 501 to $750 46 2.00 % to 5.88% 2043-08 2059-01 25,165 3,127 7,190 over $1,000 1 4.00 % to 4.00% 2056-03 2056-03 1,018 1,018 — Total Held-for-Investment 11,986 $ 1,932,241 $ 341,046 $ 212,961 (1) Rate is net of servicing fee for consolidated loans for which we do not own the MSR. T he following table displays the loan product type and accompanying loan characteristics of business purpose loans recorded on our consolidated balance sheets at December 31, 2022 and December 31, 2021. Table 7.6 – Product Types and Characteristics of Business Purpose Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term Loans at Redwood: Fixed loans: $ — to $250 13 4.25 % to 7.88% 2048-11 - 2052-06 $ 1,682 $ — $ — $ 251 to $500 14 5.00 % to 7.74% 2029-04 - 2052-07 5,014 — — $ 501 to $750 11 4.65 % to 8.44% 2021-08 - 2052-04 6,658 550 536 $ 751 to $1,000 4 7.25 % to 8.08% 2032-09 - 2033-01 3,724 — — over $1,000 49 3.75 % to 8.47% 2025-08 - 2052-04 372,768 — — Total BPL term loans at Redwood: 91 $ 389,846 $ 550 $ 536 BPL Term Loans CAFL: Fixed loans: $ — to $250 5 4.54 % to 6.27% 2022-11 - 2028-11 $ 588 $ — $ — $ 251 to $500 73 4.00 % to 7.06% 2023-01 - 2032-04 31,725 — 711 $ 501 to $750 181 4.12 % to 7.04% 2022-11 - 2032-06 112,413 2,025 1,200 $ 751 to $1,000 123 4.20 % to 7.23% 2022-08 - 2032-07 107,097 — 1,856 over $1,000 749 3.81 % to 7.57% 2022-06 - 2032-08 3,011,598 70,549 35,716 Total BPL Term loans at CAFL: 1,131 $ 3,263,421 $ 72,574 $ 39,483 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 155 6.25 % to 11.25% 2020-12 - 2024-06 $ 15,409 $ 1,240 $ 957 $ 251 to $500 54 6.00 % to 11.50% 2020-05 - 2024-06 19,745 — 1,290 $ 501 to $750 20 6.50 % to 11.00% 2021-02 - 2024-05 12,108 — 2,568 $ 751 to $1,000 7 6.95 % to 10.00% 2022-03 - 2023-06 6,375 — 980 over $1,000 25 6.95 % to 10.00% 2020-07 - 2023-06 51,541 — 27,597 261 105,178 1,240 33,392 Floating Loans: $ — to $250 1,086 9.37 % to 11.37% 2021-10 - 2024-09 $ 114,604 $ — $ 872 $ 251 to $500 116 9.37 % to 11.61% 2023-03 - 2024-09 45,290 — — $ 501 to $750 8 9.37 % to 11.61% 2023-05 - 2025-09 4,699 — — $ 751 to $1,000 3 9.37 % to 10.12% 2023-07 - 2024-05 2,754 — — over $1,000 127 8.27 % to 11.87% 2023-01 - 2025-09 1,245,902 — — 1,340 1,413,249 — 872 Total BPL Bridge Loans at Redwood: 1,601 $ 1,518,427 $ 1,240 $ 34,264 BPL Bridge Loans at CAFL: Fixed loans: $ — to $250 513 6.30 % to 11.24% 2022-05 - 2024-03 $ 44,865 $ — $ 193 $ 251 to $500 55 6.30 % to 10.99% 2022-10 - 2023-09 17,677 300 — $ 501 to $750 15 6.30 % to 10.49% 2022-12 - 2023-08 8,969 — — $ 751 to $1,000 7 6.50 % to 9.50% 2022-12 - 2023-06 6,152 — — over $1,000 15 6.75 % to 9.99% 2022-11 - 2023-10 32,140 1,400 3,760 605 109,803 1,700 3,953 December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 1,064 6.12 % to 12.62% 2021-10 - 2024-11 $ 131,492 $ — $ 2,040 $ 251 to $500 112 8.12 % to 11.37% 2021-10 - 2024-06 32,706 — 783 $ 501 to $750 19 6.92 % to 11.82% 2021-10 - 2024-11 11,595 — 552 $ 751 to $1,000 9 9.87 % to 11.37% 2023-04 - 2024-06 7,570 — — over $1,000 66 8.77 % to 12.37% 2022-10 - 2025-03 221,500 3,988 — 1,270 404,863 3,988 3,375 Total BPL Bridge Loans at CAFL: 1,875 $ 514,666 $ 5,688 $ 7,328 December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ BPL Term loans at Redwood: Fixed loans: $ — to $250 74 3.75 % to 7.75% 2048-11 - 2052-01 $ 11,515 $ 89 $ 171 $ 251 to $500 57 3.75 % to 6.50% 2026-01 - 2052-01 21,284 — — $ 501 to $750 28 3.75 % to 6.70% 2021-01 - 2052-01 16,773 — 536 $ 751 to $1,000 12 4.13 % to 5.43% 2026-12 - 2052-01 9,764 — — over $1,000 74 3.38 % to 7.15% 2020-01 - 2052-01 288,896 — 4,677 Total BPL Term Loans at Redwood: 245 $ 348,232 $ 89 $ 5,384 BPL Term Loans at CAFL: Fixed loans: $ — to $250 5 5.77 % to 6.80% 2023-01 - 2024-04 $ 398 $ 20 $ — $ 251 to $500 73 4.64 % to 7.03% 2022-02 - 2031-02 32,106 466 257 $ 501 to $750 199 4.00 % to 7.06% 2022-02 - 2031-10 123,685 717 1,224 $ 751 to $1,000 134 4.20 % to 7.23% 2022-03 - 2031-09 116,724 788 — over $1,000 762 3.81 % to 7.57% 2022-03 - 2030-10 3,068,036 26,481 40,518 Total BPL Term Loans at CAFL: 1,173 $ 3,340,949 $ 28,472 $ 41,999 BPL Bridge Loans at Redwood Fixed Loans: $ — to $250 115 5.95 % to 12.00% 2019-08 - 2023-11 $ 12,850 $ 426 $ 1,493 $ 251 to $500 26 5.95 % to 10.00% 2020-05 - 2023-09 9,294 253 1,619 $ 501 to $750 13 6.70 % to 10.00% 2021-02 - 2022-11 8,498 637 2,012 $ 751 to $1,000 9 5.45 % to 10.00% 2021-09 - 2022-10 7,544 980 — over $1,000 24 5.45 % to 10.00% 2020-07 - 2023-10 57,880 11,699 11,992 187 96,066 13,995 17,116 Floating Loans: $ — to $250 737 4.25 % to 10.00% 2019-08 - 2023-11 $ 65,611 $ 773 $ — $ 251 to $500 123 4.25 % to 8.25% 2020-05 - 2023-12 42,248 — — $ 501 to $750 9 5.75 % to 8.60% 2021-03 - 2024-02 5,724 — — $ 751 to $1,000 12 5.75 % to 7.50% 2020-12 - 2024-02 10,200 945 916 over $1,000 66 4.90 % to 9.50% 2021-03 - 2024-12 450,543 1,680 — 947 574,326 3,398 916 Total BPL Bridge Loans at Redwood: 1,134 $ 670,392 $ 17,393 $ 18,032 Bridge at CAFL: Fixed loans: $ — to $250 808 5.45 % to 10.65% 2022-01 - 2023-05 $ 58,110 $ — $ — $ 251 to $500 70 5.95 % to 10.50% 2022-01 - 2023-03 23,488 — — $ 501 to $750 24 5.95 % to 9.99% 2022-01 - 2023-08 15,041 — — $ 751 to $1,000 7 5.45 % to 8.99% 2022-01 - 2023-04 6,375 — — over $1,000 11 6.25 % to 9.00% 2022-01 - 2023-11 32,864 — — 920 135,878 — — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Floating Loans: $ — to $250 681 5.85 % to 10.50% 2021-10 - 2023-09 $ 77,001 $ 2,091 $ — $ 251 to $500 13 5.95 % to 8.35% 2021-10 - 2023-09 4,088 783 — $ 501 to $750 5 5.75 % to 8.50% 2021-10 - 2023-10 3,097 552 — $ 751 to $1,000 3 6.75 % to 7.25% 2022-04 - 2023-06 2,546 — — over $1,000 18 5.75 % to 10.00% 2021-11 - 2023-12 52,007 — — 720 138,739 3,426 — Total BPL Bridge Loans at CAFL: 1,640 $ 274,617 $ 3,426 $ — T he following table displays the loan product type and accompanying loan characteristics of multifamily loans recorded on our consolidated balance sheets at December 31, 2022. Table 8.4 – Product Types and Characteristics of Multifamily Loans December 31, 2022 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 358,419 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 88,774 — — Total: 28 $ 447,193 $ — $ — December 31, 2021 (In Thousands) Loan Balance Number of Interest Maturity Total 30-89 90+ Fixed loans: $ 10,001 to $20,000 24 4.25 % to 4.25% 2025-09 - 2025-09 $ 364,811 $ — $ — $ 20,001 to $30,000 4 4.25 % to 4.25% 2025-09 - 2025-09 90,357 — — Total: 28 $ 455,168 $ — $ —

Real Estate Securities (Tables)

Real Estate Securities (Tables)	12 Months Ended
	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities by Collateral Type and Entity	The following table presents the fair values of our real estate securities by type at December 31, 2022 and 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) December 31, 2022 December 31, 2021 Trading $ 108,329 $ 170,619 Available-for-sale 132,146 206,792 Total Real Estate Securities $ 240,475 $ 377,411
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at December 31, 2022 and 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Senior Interest-only securities (1) $ 28,867 $ 21,787 Total Senior 28,867 21,787 Subordinate RPL securities 29,002 65,140 Multifamily securities 5,027 10,549 Other third-party residential securities 45,433 73,143 Total Subordinate 79,462 148,832 Total Trading Securities $ 108,329 $ 170,619 (1) Includes $26 million and $15 million of Sequoia certificated mortgage servicing rights at December 31, 2022 and 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at December 31, 2022 and 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 215,592 235,306 Total Trading Securities $ 215,592 $ 235,306 (1) Our senior trading securities are comprised of interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the years ended December 31, 2022 and 2021. Table 9.4 – Trading Securities Activity Year Ended December 31, (In Thousands) 2022 2021 Principal balance of securities acquired (1) $ — $ 50,180 Principal balance of securities sold (1) 17,716 55,561 Net market valuation gains (losses) recorded (2) (34,221) 23,583 (1) For the year ended December 31, 2021, excludes $5 million of securities bought and sold during the same quarter. (2) 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 ("AFS") securities by position and collateral type at December 31, 2022 and 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) December 31, 2022 December 31, 2021 Subordinate Sequoia securities $ 74,367 $ 127,542 Multifamily securities 7,647 22,166 Other third-party residential securities 50,132 57,084 Total Subordinate 132,146 206,792 Total AFS Securities $ 132,146 $ 206,792 The following table provides the activity of available-for-sale securities during the years ended December 31, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Year Ended December 31, (In Thousands) 2022 2021 Fair value of securities acquired $ 10,000 $ 19,100 Fair value of securities sold — 4,785 Principal balance of securities called 20,267 27,875 Net unrealized (losses) gains on AFS securities (1) (64,704) 8,016 (1) Net unrealized (losses) gains on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at December 31, 2022 and 2021. Table 9.7 – Carrying Value of AFS Securities (In Thousands) December 31, 2022 December 31, 2021 Principal balance $ 221,933 $ 242,852 Credit reserve (28,739) (27,555) Unamortized discount, net (61,650) (76,023) Amortized cost 131,544 139,274 Gross unrealized gains 16,269 67,815 Gross unrealized losses (13,127) (297) CECL allowance (2,540) — Carrying Value $ 132,146 $ 206,792
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the years ended December 31, 2022 and 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 Year Ended December 31, 2022 Year Ended December 31, 2021 Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 27,555 $ 76,023 $ 44,967 $ 95,718 Amortization of net discount — (11,153) — (23,254) Realized credit recoveries (losses), net 471 — (707) — Acquisitions — — 2,825 1,208 Sales, calls, other (842) (1,665) (1,328) (15,851) Transfers to (release of) credit reserves, net 1,555 (1,555) (18,202) 18,202 Ending Balance $ 28,739 $ 61,650 $ 27,555 $ 76,023
Components of Carrying Value of Available for Sale Securities in Unrealized Loss Position	The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at December 31, 2022 and 2021. Table 9.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Fair Unrealized Fair Value Unrealized (In Thousands) December 31, 2022 $ 72,679 $ (12,940) $ 1,414 $ (186) December 31, 2021 6,827 (251) 1,554 (46)
Schedule 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 December 31, 2022. Table 9.10 – Significant Credit Quality Indicators December 31, 2022 Subordinate Securities Default rate 0.7% Loss severity 20%
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 held at December 31, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Year Ended Year Ended (In Thousands) December 31, 2022 December 31, 2021 Beginning balance allowance for credit losses $ — $ 388 Additions to allowance for credit losses on securities for which credit losses were not previously recorded 1,726 — Additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period 814 (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 $ 2,540 $ —
Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the years ended December 31, 2022, 2021, and 2020. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Years Ended December 31, (In Thousands) 2022 2021 2020 Gross realized gains - sales $ — $ 1,540 $ 8,779 Gross realized gains - calls 2,508 15,553 5 Gross realized losses - sales — — (4,144) Total Realized Gains on Sales and Calls of AFS Securities, net $ 2,508 $ 17,093 $ 4,640

Home Equity Investments (HEI) (

Home Equity Investments (HEI) (Tables)	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Schedule Of Home Equity Investments	The following table presents our home equity investments at December 31, 2022 and December 31, 2021. Table 10.1 – Home Equity Investments (In Thousands) December 31, 2022 December 31, 2021 HEIs at Redwood $ 270,835 $ 33,187 HEIs held at consolidated HEI securitization entity 132,627 159,553 Total Home Equity Investments $ 403,462 $ 192,740
Schedule Of Activity of Home Equity Investments	The following table provides the activity of HEIs during the years ended December 31, 2022 and 2021. Table 10.2 – Activity of HEI Twelve Months Ended Twelve Months Ended (In Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Fair value of HEI purchased $ 248,218 $ — $ 32,650 $ — Fair value of HEI transferred (1) — — (47,209) 47,209 Net market valuation gains (losses) recorded (2) (202) 5,875 13,207 567 (1) Includes HEI transferred into our HEI securitization. (2) We account for HEI at Redwood under the fair value option and record net market valuation changes through Investment fair value changes, net on our Consolidated statements of income (loss). We account for Securitized HEI under the CFE election and net market valuation gains (losses) for these investments are recorded through Investment fair value changes, net on our Consolidated statements of income (loss).
Schedule Of HEI Characteristics	The following tables summarizes the characteristics of HEIs at December 31, 2022 and 2021. Table 10.3 – HEI Characteristics December 31, 2022 December 31, 2021 (Dollars in Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Number of HEI contracts 2,599 1,007 333 1,318 Average initial amount of contract $ 101 $ 94 $ 95 $ 91
Geographic Concentration of HEI	The following tables present the geographic concentration of HEI recorded on our consolidated balance sheets at December 31, 2022 and 2021. Table 10.4 – Geographic Concentration of HEI December 31, 2022 Geographic Concentration HEI at Redwood Securitized HEI California 44 % 59 % Florida 14 % 4 % Arizona 7 % — % Washington 6 % 6 % Colorado 5 % 4 % New York 4 % 11 % Other states (none greater than 5%) 20 % 16 % Total 100 % 100 % December 31, 2021 Geographic Concentration HEI at Redwood Securitized HEI California 42 % 58 % Florida 9 % 4 % Arizona 10 % — % Washington 12 % 6 % Colorado 3 % 5 % New York 5 % 10 % Other states (none greater than 5%) 19 % 17 % Total 100 % 100 %

Other Investments (Tables)

Other Investments (Tables)	12 Months Ended
	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at December 31, 2022 and 2021 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) December 31, 2022 December 31, 2021 Servicer advance investments $ 269,259 $ 350,923 Strategic investments 56,518 35,702 Excess MSRs 39,035 44,231 Mortgage servicing rights 25,421 12,438 Other 705 5,935 Total Other Investments $ 390,938 $ 449,229
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at December 31, 2022 and 2021: Table 11.2 – Components of Servicer Advance Receivables (In Thousands) December 31, 2022 December 31, 2021 Principal and interest advances $ 81,447 $ 94,148 Escrow advances (taxes and insurance advances) 123,541 172,847 Corporate advances 35,377 43,958 Total Servicer Advance Receivables $ 240,365 $ 310,953

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Aggregate Fair Value and Notional Amount of Derivative Financial Instruments	The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2022 and 2021. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments December 31, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 14,625 $ 285,000 $ 611 $ 161,500 TBAs 1,893 220,000 2,880 2,440,000 Interest rate futures 3,976 350,600 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 336 8,166 4,633 971,631 Total Assets $ 20,830 $ 863,766 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ — $ — $ (1,251) $ 283,100 TBAs (16,784) 845,000 (658) 870,000 Interest rate futures (57) 60,000 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (14) 3,532 (503) 404,190 Total Liabilities $ (16,855) $ 908,532 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 3,975 $ 1,772,298 $ 23,150 $ 6,861,921
Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges	The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the years ended December 31, 2022, 2021, and 2020. Table 12.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Years Ended December 31, (In Thousands) 2022 2021 2020 Net interest expense on cash flows hedges $ — $ — $ (860) Realized net losses reclassified from other comprehensive income (4,127) (4,127) (3,188) Total Interest Expense $ (4,127) $ (4,127) $ (4,048)

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets at December 31, 2022 and 2021 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) December 31, 2022 December 31, 2021 Accrued interest receivable $ 60,893 $ 47,515 Deferred tax asset 41,931 20,867 Investment receivable 36,623 82,781 Operating lease right-of-use assets 16,177 18,772 Margin receivable 13,802 7,269 Fixed assets and leasehold improvements (1) 12,616 9,019 REO 6,455 36,126 Income tax receivables 3,399 22 Other 19,346 8,746 Total Other Assets $ 211,240 $ 231,117
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at December 31, 2022 and 2021 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) December 31, 2022 December 31, 2021 Accrued interest payable $ 46,612 $ 39,297 Accrued compensation 30,929 74,636 Payable to non-controlling interests 44,859 42,670 Operating lease liabilities 18,563 20,960 Loan and MSR repurchase reserve 7,051 9,306 Guarantee obligations 6,344 7,459 Margin payable 5,944 24,368 Accrued operating expenses 5,740 4,377 Bridge loan holdbacks 3,301 3,109 Current accounts payable 4,234 8,273 Other 6,627 11,333 Total Accrued Expenses and Other Liabilities $ 180,203 $ 245,788
Other Real Estate, Roll Forward	The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the years ended December 31, 2022 and 2021. Table 13.3 – REO Activity Year Ended December 31, 2022 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 Transfers to REO 3,974 544 3,976 — 8,494 Liquidations (1) (15,060) (505) (3,139) (20,969) (39,673) Changes in fair value, net 1,030 443 34 — 1,507 Balance at End of Period $ 3,012 $ 544 $ 2,899 $ — $ 6,455 Year Ended December 31, 2021 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 4,600 $ 638 $ 646 $ 2,529 $ 8,413 Transfers to REO 15,424 217 3,268 21,129 40,038 Liquidations (1) (7,515) (956) (2,137) (2,034) (12,642) Changes in fair value, net 559 162 251 (655) 317 Balance at End of Period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 (1) For the years ended December 31, 2022 and 2021, REO liquidations resulted in $2 million and $0.3 million of realized gains, respectively, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss). The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at December 31, 2022 and 2021. Table 13.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total At December 31, 2022 2 2 24 — 28 At December 31, 2021 5 2 24 3 34

Short-Term Debt (Tables)

Short-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt	The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2022 and 2021. Table 14.1 – Short-Term Debt December 31, 2022 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity (2) Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 703,406 $ 2,550,000 6.16 % 3/2023 - 12/2023 267 Business purpose loan warehouse 4 680,100 1,650,000 6.93 % 3/2023 - 9/2023 179 Real estate securities repo 7 124,909 — 5.22 % 1/2023 - 3/2023 27 HEI warehouse 1 111,681 150,000 8.54 % 11/2023 306 Total Short-Term Debt Facilities 19 1,620,096 Servicer advance financing 1 206,510 290,000 6.67 % 11/2023 305 Promissory notes N/A 27,058 — 6.64 % N/A N/A Convertible notes, net N/A 176,015 — 4.75 % 8/2023 227 Total Short-Term Debt $ 2,029,679 December 31, 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 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Convertible notes, net N/A — Total Short-Term Debt $ 2,177,362 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR at December 31, 2022 or 1- or 3-month LIBOR at December 31, 2021 . (2) Promissory notes payable on demand to lender with 90-day notice.
Collateral for Short-Term Debt	The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt facilities at December 31, 2022 and 2021. Table 14.2 – Collateral for Short-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 775,545 $ 1,838,797 Business purpose loans 871,072 167,687 HEI 191,278 — Real estate securities On balance sheet 72,133 5,823 Sequoia securitizations (1) 74,170 61,525 Freddie Mac K-Series securitization (1) 31,767 31,657 Total real estate securities owned 178,070 99,005 Restricted cash and other assets 1,097 1,962 Total Collateral for Short-Term Debt Facilities 2,017,062 2,107,451 Cash 12,713 6,480 Restricted cash — 25,420 Servicer advances 269,259 310,953 Total Collateral for Servicer Advance Financing 281,972 342,853 Total Collateral for Short-Term Debt $ 2,299,034 $ 2,450,304
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 December 31, 2022. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities December 31, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 186,287 $ 517,120 $ 703,407 Business purpose loans — 267,588 412,512 680,100 Real estate securities 89,216 35,693 — 124,909 HEI warehouse — — 111,681 111,681 Total Secured Short-Term Debt 89,216 489,567 1,041,313 1,620,096 Servicer advance financing — — 206,510 206,510 Promissory notes — 27,058 — 27,058 Convertible notes, net — — 176,015 176,015 Total Short-Term Debt $ 89,216 $ 516,625 $ 1,423,838 $ 2,029,679

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Carrying Value of ABS Issued by Consolidated Securitization Entities Sponsored, along with Other Selected Information	Table 15.1 – Asset-Backed Securities Issued December 31, 2022 (Dollars in Thousands) Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total Certificates with principal balance $ 200,047 $ 3,595,715 $ 3,322,250 $ 1,306,652 $ 410,725 $ 108,962 $ 8,944,351 Interest-only certificates 180 57,871 124,928 15,328 7,379 — 205,686 Market valuation adjustments (16,036) (682,477) (331,371) (99,830) (25,319) (8,252) (1,163,285) ABS Issued, Net $ 184,191 $ 2,971,109 $ 3,115,807 $ 1,222,150 $ 392,785 $ 100,710 $ 7,986,752 Range of weighted average interest rates, by series (3) 2.69% to 5.19% 2.57% to 6.13% 2.34% to 5.92% 3.50% to 4.75% 3.41 % 3.78 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2032 2028-2059 2025 2052 Number of series 20 17 19 3 1 1 December 31, 2021 (Dollars in Thousands) Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total Certificates with principal balance $ 259,505 $ 3,353,073 $ 3,264,766 $ 1,535,638 $ 418,700 $ 138,792 $ 8,970,474 Interest-only certificates 619 32,749 193,725 11,714 10,184 — 248,991 Market valuation adjustments (32,243) (2,774) 16,407 41,111 12,973 (1,382) 34,092 ABS Issued, Net $ 227,881 $ 3,383,048 $ 3,474,898 $ 1,588,463 $ 441,857 $ 137,410 $ 9,253,557 Range of weighted average interest rates, by series (3) 0.23% to 1.44% 2.40% to 5.03% 2.64% to 5.24% 3.50% to 4.75% 3.41% 3.31 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 16 16 3 1 1 (1) Includes $485 million and $270 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at December 31, 2022 and December 31, 2021, respectively. (2) Includes $86 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at December 31, 2022 and December 31, 2021, respectively.
Schedule of Interest Payable On Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at December 31, 2022 and 2021. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) December 31, 2022 December 31, 2021 Legacy Sequoia $ 282 $ 99 Sequoia 8,880 8,452 CAFL 10,918 11,030 Freddie Mac SLST (1) 3,561 4,630 Freddie Mac K-Series 1,167 1,190 Total Accrued Interest Payable on ABS Issued $ 24,808 $ 25,401 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2022
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 December 31, 2022 and 2021. Table 16.1 – Long-Term Debt December 31, 2022 (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 Facility A $ 130,408 $ — $ 130,408 N/A 5.71 % 9/2024 Facility B 101,706 (50) 101,656 N/A 4.21 % 2/2025 Facility C 68,995 (125) 68,870 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 404,622 (667) 403,955 $ 750,000 SOFR + 2.87% N/A Facility E 308,933 (838) 308,095 335,000 SOFR + 3.25% 12/2025 Recourse BPL Financing Facility F 64,689 (473) 64,216 500,000 SOFR + 2.25%-2.50% 9/2024 Total Long-Term Debt Facilities 1,079,353 (2,153) 1,077,200 Convertible notes 5.625% convertible senior notes 150,200 (1,282) 148,918 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 162,092 (2,410) 159,682 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (6,142) 208,858 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (733) 138,767 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,746,145 $ (12,720) $ 1,733,425 Table 16.1 – Long-Term Debt (continued) December 31, 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 Facility A $ 144,385 $ (313) $ 144,072 N/A 4.21 % 9/2024 Facility B 102,351 (353) 101,998 N/A 4.21 % 2/2025 Facility C 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 307,215 (507) 306,708 400,000 L + 2.75% N/A Recourse BPL Financing Facility G 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility H 110,148 — 110,148 450,000 L + 3.35% 6/2023 Total Long-Term Debt Facilities 990,155 (1,672) 988,483 Convertible notes 4.75% convertible senior notes 198,629 (1,836) 196,793 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,072) 148,128 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,384) 168,708 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (779) 138,721 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,650,576 $ (9,743) $ 1,640,833 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or SOFR plus an applicable spread. The following table summarizes the accrued interest payable on long-term debt at December 31, 2022 and 2021. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Long-term debt facilities $ 3,364 $ 815 Convertible notes 4.75% convertible senior notes — 3,564 5.625% convertible senior notes 3,896 3,896 5.75% exchangeable senior notes 2,332 2,474 7.75% convertible senior notes 741 — Trust preferred securities and subordinated notes 1,633 581 Total Accrued Interest Payable on Long-Term Debt $ 11,966 $ 11,330
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 December 31, 2022 and 2021. Table 16.2 – Collateral for Long-Term Debt (In Thousands) December 31, 2022 December 31, 2021 Collateral Type BPL bridge loans $ 897,782 $ 554,597 BPL term loans 66,567 244,703 Real estate securities Sequoia securitizations (1) 178,439 247,227 CAFL securitizations (1) 237,068 260,405 Total Collateral for Long-Term Debt $ 1,379,856 $ 1,306,932

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments	The following table presents our future lease commitments at December 31, 2022. Table 17.1 – Future Lease Commitments by Year (In Thousands) December 31, 2022 2023 $ 4,956 2024 4,601 2025 3,580 2026 3,420 2027 2,563 2028 and thereafter 1,991 Total Lease Commitments 21,111 Less: Imputed interest (2,548) Operating Lease Liabilities $ 18,563

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income (Loss) by Component	The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2022 and 2021. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Years Ended December 31, 2022 2021 (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 $ 67,503 $ (76,430) $ 76,336 $ (80,557) Other comprehensive (loss) income before reclassifications (64,704) — 8,016 — Amounts reclassified from other accumulated comprehensive (loss) income 636 4,127 (16,849) 4,127 Net current-period other comprehensive (loss) income (64,068) 4,127 (8,833) 4,127 Balance at End of Period $ 3,435 $ (72,303) $ 67,503 $ (76,430)
Reclassifications out of Accumulated Other Comprehensive Income (Loss)	The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Year Ended December 31, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 2,541 $ (388) Gain on sales and calls of AFS securities Realized gains, net (1,905) (16,461) $ 636 $ (16,849) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 4,127 $ 4,127 $ 4,127 $ 4,127
Basic and Diluted Earnings (Loss) Per Common Share	The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2022, 2021, and 2020. Table 18.3 – Basic and Diluted Earnings per Common Share Years Ended December 31, (In Thousands, except Share Data) 2022 2021 2020 Basic Earnings (Loss) per Common Share: Net (loss) income attributable to Redwood $ (163,520) $ 319,613 $ (581,847) Less: Dividends and undistributed earnings allocated to participating securities (4,335) (10,635) (1,990) Net (loss) income allocated to common shareholders $ (167,855) $ 308,978 $ (583,837) Basic weighted average common shares outstanding 117,227,846 113,230,190 113,935,605 Basic (Loss) Earnings per Common Share $ (1.43) $ 2.73 $ (5.12) Diluted Earnings per Common Share: Net (loss) income attributable to Redwood $ (163,520) $ 319,613 $ (581,847) Less: Dividends and undistributed earnings allocated to participating securities (4,335) (9,880) (1,990) Add back: interest expense of convertible notes for the period, net of tax — 27,463 — Net (loss) income allocated to common shareholders $ (167,855) $ 337,196 $ (583,837) Weighted average common shares outstanding 117,227,846 113,230,190 113,935,605 Net effect of dilutive equity awards — 273,236 — Net effect of assumed convertible notes conversion to common shares — 28,566,875 — Diluted weighted average common shares outstanding 117,227,846 142,070,301 113,935,605 Diluted (Loss) Earnings per Common Share $ (1.43) $ 2.37 $ (5.12)

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity Compensation Plans	Table 19.1 – Activities of Equity Compensation Costs by Award Type Year Ended December 31, 2022 (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 $ 84 $ 3,589 $ 26,473 $ 12,237 $ — $ 42,383 Equity grants — 4,688 11,672 9,875 224 26,459 Performance-based valuation adjustment — — — (3,205) — (3,205) Equity grant forfeitures (5) (548) (4,812) — — (5,365) Equity compensation expense (79) (2,661) (13,484) (3,636) (224) (20,084) Unrecognized Compensation Cost at End of Period $ — $ 5,068 $ 19,849 $ 15,271 $ — $ 40,188
Restricted Stock Outstanding	The following table summarizes the activities related to RSAs for the years ended December 31, 2022, 2021, and 2020. Table 19.2 – Restricted Stock Awards Activities Years Ended December 31, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 28,141 $ 14.74 78,998 $ 15.23 216,470 $ 14.85 Granted — — — — — — Vested (27,800) 14.74 (50,857) 15.50 (102,615) 14.44 Forfeited (341) 14.66 — — (34,857) 15.16 Outstanding at End of Period — $ — 28,141 $ 14.74 78,998 $ 15.23 The following table summarizes the activities related to RSUs for the years ended December 31, 2022, 2021, and 2020. Table 19.3 – Restricted Stock Units Activities Years Ended December 31, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of period 431,072 $ 11.55 282,424 $ 16.09 275,173 $ 15.65 Granted 558,388 8.38 272,261 8.80 205,482 16.86 Vested (134,426) 12.56 (78,270) 15.93 (68,076) 15.65 Forfeited (48,915) 11.04 (45,343) 15.75 (130,155) 16.60 Outstanding at End of Period 806,119 $ 9.22 431,072 $ 11.55 282,424 $ 16.09
Deferred Stock Units Activity	The following table summarizes the activities related to DSUs for the years ended December 31, 2022, 2021, and 2020. Table 19.4 – Deferred Stock Units Activities Years Ended December 31, 2022 2021 2020 Units Weighted Units Weighted Units Weighted Outstanding at beginning of period 4,022,088 $ 12.93 2,805,144 $ 13.84 2,630,805 $ 15.66 Granted 1,759,344 8.83 1,588,862 12.04 1,186,154 10.69 Distributions (551,401) 11.35 (340,757) 15.82 (720,562) 14.31 Forfeitures (398,693) 12.07 (31,161) 17.65 (291,253) 16.25 Balance at End of Period 4,831,338 $ 11.31 4,022,088 $ 12.93 2,805,144 $ 13.84
Summary of Activity Related to ESPP	The following table summarizes the activities related to the ESPP for the years ended December 31, 2022, 2021, and 2020. Table 19.5 – Employee Stock Purchase Plan Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Balance at beginning of period $ 7 $ 17 $ 4 Employee purchases 584 595 347 Cost of common stock issued (555) (605) (334) Balance at End of Period $ 36 $ 7 $ 17
Summary of Activity Related to Executive Deferred Compensation Plan	The following table summarizes the cash account activities related to the EDCP for the years ended December 31, 2022, 2021, and 2020. Table 19.6 – EDCP Cash Accounts Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Balance at beginning of period $ 2,730 $ 2,289 $ 2,454 New deferrals 1,083 1,017 726 Accrued interest 108 56 42 Withdrawals (614) (632) (933) Balance at End of Period $ 3,307 $ 2,730 $ 2,289

Mortgage Banking Activities (Ta

Mortgage Banking Activities (Tables)	12 Months Ended
	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Mortgage Banking Activities, Net	The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the years ended December 31, 2022, 2021, and 2020. Table 20.1 – Mortgage Banking Activities Years Ended December 31, (In Thousands) 2022 2021 2020 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (131,675) $ 83,733 $ 41,284 Trading securities (2) 4,249 (352) (4,535) Risk management derivatives (3) 100,713 38,352 (26,376) Other income (expense), net (4) 5,431 5,418 (6,652) Total residential mortgage banking activities, net (21,282) 127,151 3,721 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: BPL term loans, at fair value (1) (91,690) 63,872 82,510 BPL bridge loans, at fair value 2,679 8,253 (4,998) Risk management derivatives (3) 56,731 2,708 (21,403) Other income, net (5) 39,903 33,760 18,642 Total business purpose mortgage banking activities, net 7,623 108,593 74,751 Mortgage Banking Activities, Net $ (13,659) $ 235,744 $ 78,472 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For business purpose loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used along 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 repurchases, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income (Tables)

Other Income (Tables)	12 Months Ended
	Dec. 31, 2022
Other Income and Expenses [Abstract]
Interest and Other Income	The following table presents the components of Other income recorded in our consolidated statements of income (loss) for the years ended December 31, 2022, 2021 and 2020. Table 21.1 – Other Income, Net Years Ended December 31, (In Thousands) 2022 2021 2020 MSR income (loss), net (1) $ 14,879 $ 2,380 $ (9,694) Risk share income 1,289 2,815 4,367 FHLBC capital stock dividend — 53 1,229 Bridge Loan Fees 5,276 4,194 3,812 BPL loan administration fee income — 184 2,912 Other, net (240) 2,392 1,562 Other Income, Net $ 21,204 $ 12,018 $ 4,188

Operating Expenses (Tables)

Operating Expenses (Tables)	12 Months Ended
	Dec. 31, 2022
Other Income and Expenses [Abstract]
Components of General and Administrative Expenses and Other Expenses	Components of our general and administrative expenses, portfolio management costs, loan acquisition costs, and other expenses for the years ended December 31, 2022, 2021 and 2020 are presented in the following table. Table 22.1 – Components of Operating Expenses Years Ended December 31, (In Thousands) 2022 2021 2020 General and Administrative Expenses Fixed compensation expense (1) $ 63,642 $ 46,328 $ 46,689 Annual variable compensation expense 12,873 58,569 14,116 Long-term incentive award expense (2) 23,101 19,938 12,439 Acquisition-related equity compensation expense (3) — 3,813 4,848 Systems and consulting 14,193 14,445 11,728 Office costs 8,574 7,837 7,794 Accounting and legal 6,644 4,975 7,928 Corporate costs 3,675 3,388 2,829 Other 8,206 5,925 5,127 Total General and Administrative Expenses 140,908 165,218 113,498 Portfolio Management Costs 7,951 5,758 4,204 Loan Acquisition Costs Commissions 7,154 7,116 4,321 Underwriting costs 3,368 7,645 2,447 Transfer and holding costs 1,244 1,458 1,757 Total Loan Acquisition Costs 11,766 16,219 8,525 Other Expenses Goodwill impairment expense — — 88,675 Amortization of purchase-related intangible assets 13,969 15,304 15,925 Other 1,621 1,391 4,185 Total Other Expenses 15,590 16,695 108,785 Total Operating Expenses $ 176,215 $ 203,890 $ 235,012 (1) Includes $7 million of severance and transition-related expenses for the year ended December 31, 2022. (2) For the years ended December 31, 2022 and 2021, long-term incentive award expense includes $20 million and $14 million, respectively, of expense for awards settleable in shares of our common stock and $3 million and $6 million, respectively, of expense for awards settleable in cash. (3) 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 in 2019.

Taxes (Tables)

Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Components of Net Deferred Tax Assets	Components of our net deferred tax assets at December 31, 2022 and 2021 are presented in the following table. Table 23.1 – Deferred Tax Assets (Liabilities) (In Thousands) December 31, 2022 December 31, 2021 Deferred Tax Assets Net operating loss carryforward – state $ 102,795 $ 98,011 Net capital loss carryforward – state 17,244 18,082 Net operating loss carryforward – federal 18,738 82 Real estate assets 2,851 1,347 Allowances and accruals 3,035 3,528 Goodwill and intangible assets 26,193 24,973 Other 3,803 3,016 Tax effect of unrealized (gains) / losses - OCI 365 (21) Total Deferred Tax Assets 175,024 149,018 Deferred Tax Liabilities Mortgage Servicing Rights (7,475) (3,617) Interest rate agreements (2,780) (3,324) Total Deferred Tax Liabilities (10,255) (6,941) Valuation allowance (122,838) (121,210) Total Net Deferred Tax Asset, net of Valuation Allowance $ 41,931 $ 20,867
Provision for Income Taxes	The following table summarizes the provision for income taxes for the years ended December 31, 2022, 2021, and 2020. Table 23.2 – Provision for Income Taxes Years Ended December 31, (In Thousands) 2022 2021 2020 Current Provision for Income Taxes Federal $ 340 $ 28,718 $ 1,598 State 496 9,859 (182) Total Current Provision for Income Taxes 836 38,577 1,416 Deferred (Benefit) Provision for Income Taxes Federal (19,083) (17,172) (6,024) State (1,673) (2,927) — Total Deferred (Benefit) Provision for Income Taxes (20,756) (20,099) (6,024) Total (Benefit From) Provision for Income Taxes $ (19,920) $ 18,478 $ (4,608)
Reconciliation of Statutory Tax Rate to Effective Tax Rate	The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at December 31, 2022, 2021, and 2020. Table 23.3 – Reconciliation of Statutory Tax Rate to Effective Tax Rate December 31, 2022 December 31, 2021 December 31, 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect, as applicable 0.9 % 1.8 % — % Differences in taxable income from GAAP income (0.5) % (2.9) % (1.4) % Change in valuation allowance — % (4.9) % (2.8) % REIT GAAP income or loss not subject to federal income tax (10.5) % (9.5) % (16.0) % Effective Tax Rate 10.9 % 5.5 % 0.8 %

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Financial Information by Segment	The following tables present financial information by segment for the years ended December 31, 2022, 2021, and 2020. Table 24.1 – Business Segment Financial Information Year Ended December 31, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 45,202 $ 28,674 $ 627,134 $ 6,844 $ 707,854 Interest expense (32,735) (18,041) (445,154) (56,470) (552,400) Net interest income 12,467 10,633 181,980 (49,626) 155,454 Non-interest (loss) income Mortgage banking activities, net (21,282) 7,623 — — (13,659) Investment fair value changes, net — — (191,148) 15,590 (175,558) Other income, net — 3,509 18,596 (901) 21,204 Realized gains, net — — 3,174 2,160 5,334 Total non-interest (loss) income, net (21,282) 11,132 (169,378) 16,849 (162,679) General and administrative expenses (22,566) (56,557) (6,036) (55,749) (140,908) Portfolio management costs — — (7,951) — (7,951) Loan acquisition costs (3,085) (8,681) — — (11,766) Other expenses 74 (13,969) (1,695) — (15,590) Benefit from (Provision for) income taxes 12,814 13,157 (6,051) — 19,920 Segment Contribution $ (21,578) $ (44,285) $ (9,131) $ (88,526) Net (loss) $ (163,520) Non-cash amortization (expense) income, net $ (1,075) $ (15,071) $ 2,507 $ (8,289) $ (21,928) Table 24.1 – Business Segment Financial Information (continued) Year Ended December 31, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 48,953 $ 14,054 $ 507,173 $ 4,746 $ 574,926 Interest expense (26,963) (7,230) (351,635) (40,921) (426,749) Net interest income 21,990 6,824 155,538 (36,175) 148,177 Non-interest income (loss) Mortgage banking activities, net 127,151 108,593 — — 235,744 Investment fair value changes, net — — 129,614 (1,565) 128,049 Other income, net — 1,046 10,021 951 12,018 Realized gains, net — — 17,993 — 17,993 Total non-interest income (loss), net 127,151 109,639 157,628 (614) 393,804 General and administrative expenses (33,574) (46,586) (7,992) (77,066) (165,218) Portfolio management costs — — (5,758) — (5,758) Loan acquisition costs (7,480) (8,100) (635) (4) (16,219) Other expenses 104 (15,127) (1,689) 17 (16,695) (Provision for) Benefit from income taxes (25,777) (8,122) (3,862) 19,283 (18,478) Segment Contribution $ 82,414 $ 38,528 $ 293,230 $ (94,559) Net Income $ 319,613 Non-cash amortization (expense) income, net $ (82) $ (16,452) $ (20,781) $ (7,878) $ (45,193) Table 24.1 – Business Segment Financial Information (continued) Year Ended December 31, 2020 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 17,839 $ 19,200 $ 525,741 $ 9,136 $ 571,916 Interest expense (11,978) (13,145) (375,262) (47,620) (448,005) Net interest income 5,861 6,055 150,479 (38,484) 123,911 Non-interest income Mortgage banking activities, net 3,721 74,622 129 — 78,472 Investment fair value changes, net — (101) (586,333) (2,004) (588,438) Other income, net — 3,228 (1,725) 2,685 4,188 Realized gains, net — — 5,242 25,182 30,424 Total non-interest income (loss), net 3,721 77,749 (582,687) 25,863 (475,354) General and administrative expenses (16,318) (37,461) (6,819) (52,900) (113,498) Portfolio management costs (50) — (4,154) — (4,204) Loan acquisition costs (2,656) (5,859) — (10) (8,525) Other expense (4,114) (104,147) 194 (718) (108,785) Benefit from (provision for) income taxes 4,567 (4,063) 4,104 — 4,608 Segment Contribution $ (8,989) $ (67,726) $ (438,883) $ (66,249) Net (loss) $ (581,847) Non-cash amortization income (expense), net $ (662) $ (18,426) $ (1,282) $ (4,954) $ (25,324) Other significant non-cash expense: goodwill impairment — (88,675) — — (88,675)
Schedule Of Corporate And Other	The following table presents the components of Corporate/Other for the years ended December 31, 2022, 2021, and 2020. Table 24.2 – Components of Corporate/Other Years Ended December 31, 2022 2021 2020 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 5,672 $ 1,172 $ 6,844 $ 4,709 $ 37 $ 4,746 $ 9,061 $ 75 $ 9,136 Interest expense (5,206) (51,264) (56,470) (3,040) (37,881) (40,921) (5,945) (41,675) (47,620) Net interest income (loss) 466 (50,092) (49,626) 1,669 (37,844) (36,175) 3,116 (41,600) (38,484) Non-interest income Investment fair value changes, net (1,302) 16,892 15,590 (1,558) (7) (1,565) (1,512) (492) (2,004) Other income, net — (901) (901) — 951 951 — 2,685 2,685 Realized gains, net — 2,160 2,160 — — — — 25,182 25,182 Total non-interest (loss) income, net (1,302) 18,151 16,849 (1,558) 944 (614) (1,512) 27,375 25,863 General and administrative expenses — (55,749) (55,749) — (77,066) (77,066) — (52,900) (52,900) Portfolio management costs — — — — — — — — — Loan acquisition costs — — — — (4) (4) — (10) (10) Other expenses — — — — 17 17 — (718) (718) Benefit from income taxes — — — — 19,283 19,283 — — — Total $ (836) $ (87,690) $ (88,526) $ 111 $ (94,670) $ (94,559) $ 1,604 $ (67,853) $ (66,249) (1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Supplemental Balance Sheet	The following table presents supplemental information by segment at December 31, 2022 and 2021. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total December 31, 2022 Residential loans $ 628,160 $ — $ 4,800,096 $ 184,932 $ 5,613,188 Business purpose loans — 364,073 4,968,513 — 5,332,586 Consolidated Agency multifamily loans — — 424,551 — 424,551 Real estate securities — — 240,475 — 240,475 Home equity investments — — 403,462 403,462 Other investments — — 334,420 56,518 390,938 Goodwill — 23,373 — — 23,373 Intangible assets — 40,892 — — 40,892 Total assets 660,916 487,159 11,303,991 578,833 13,030,899 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Consolidated Agency multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Home equity investments — — 192,740 — 192,740 Other investments — — 413,527 35,702 449,229 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Organization (Details)

Organization (Details)	12 Months Ended
	Dec. 31, 2022 segment
Accounting Policies [Abstract]
Number of operating segments	3

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ in Thousands		3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 01, 2022 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) partnership	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 partnership	Dec. 31, 2019 USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2			2
Goodwill recognized from acquisition				$ 23,373	$ 0
Goodwill impairment expense		$ 89,000		0	0	$ 88,675
Net interest income				155,454	148,177	123,911
Non-interest income (loss)				(162,679)	393,804	(475,354)
Net (loss) income				$ (163,520)	319,613	(581,847)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2
VIE, ownership interest rate (as a percent)				80%
Net interest income				$ 115,743	89,497	81,050
Non-interest income (loss)				(145,560)	90,193	(167,856)
Net (loss) income				(31,701)	177,718	$ (87,480)
Riverbend
Variable Interest Entity [Line Items]
Cash	$ 44,126
Earn out period	2 years
Potential future payments on loans	$ 25,300
Contingent consideration expense	0			0
Intangible assets	$ 13,300
Amortization of intangible assets			$ 1,000
Goodwill recognized from acquisition				23,000
Goodwill deductible for tax purposes			23,000	23,000
Net interest income			1,000
Non-interest income (loss)			2,000
Net (loss) income			$ (2,000)
5 Arches
Variable Interest Entity [Line Items]
Intangible assets								$ 25,000
CoreVest
Variable Interest Entity [Line Items]
Intangible assets								$ 57,000
5 Arches LLC And CoreVest
Variable Interest Entity [Line Items]
Acquisition related costs				1,000
Amortization of intangible assets				$ 53,708	$ 39,739

Basis of Presentation - Schedul

Basis of Presentation - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jul. 01, 2022	Dec. 31, 2022	[1]	Dec. 31, 2021	[1]	Dec. 31, 2020
Allocated to:
Goodwill		$ 23,373		$ 0		$ 0
Riverbend
Purchase price:
Cash	$ 44,126
Provisional consideration payable	153
Total consideration	44,279
Allocated to:
Business purpose loans, at fair value	59,748
Other investments	2,443
Cash and cash equivalents	3,490
Other assets	12,982
Goodwill	23,373
Intangible assets	13,300
Total assets acquired	115,336
Short-term debt, net	67,423
Accrued expenses and other liabilities	3,634
Total liabilities assumed	71,057
Total net assets acquired	$ 44,279
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Basis of Presentation - Sched_2

Basis of Presentation - Schedule of Intangible Assets – Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-lived Intangible Assets [Roll Forward]
Carrying Value	$ 40,892
5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	94,600	$ 81,300
Accumulated amortization	(53,708)	(39,739)
Carrying Value	$ 40,892	$ 41,561
Weighted Average Amortization Period (in years)	6 years	6 years
Borrower network | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 56,300	$ 45,300
Accumulated amortization	(21,547)	(14,291)
Carrying Value	$ 34,753	$ 31,009
Weighted Average Amortization Period (in years)	7 years	7 years
Broker network | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 18,100	$ 18,100
Accumulated amortization	(13,877)	(10,257)
Carrying Value	$ 4,223	$ 7,843
Weighted Average Amortization Period (in years)	5 years	5 years
Non-compete agreements | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 11,400	$ 9,500
Accumulated amortization	(9,817)	(7,597)
Carrying Value	$ 1,583	$ 1,903
Weighted Average Amortization Period (in years)	3 years	3 years
Tradenames | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 4,400	$ 4,000
Accumulated amortization	(4,067)	(3,194)
Carrying Value	$ 333	$ 806
Weighted Average Amortization Period (in years)	3 years	3 years
Developed technology | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 1,800	$ 1,800
Accumulated amortization	(1,800)	(1,800)
Carrying Value	$ 0	$ 0
Weighted Average Amortization Period (in years)	2 years	2 years
Loan administration fees on existing loan assets | 5 Arches LLC And CoreVest
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets at Acquisition	$ 2,600	$ 2,600
Accumulated amortization	(2,600)	(2,600)
Carrying Value	$ 0	$ 0
Weighted Average Amortization Period (in years)	1 year	1 year

Basis of Presentation - Intangi

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Accounting Policies [Abstract]
2023	$ 12,429
2024	9,412
2025	8,426
2026	6,696
2027	1,571
2028 and thereafter	2,358
Total Future Intangible Asset Amortization	$ 40,892

Basis of Presentation - Goodwil

Basis of Presentation - Goodwill – Activity (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance		$ 0	[1]	$ 0
Goodwill recognized from acquisition		23,373		0
Goodwill impairment expense	$ 89,000	0		0		$ 88,675
Ending Balance		$ 23,373	[1]	$ 0	[1]	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Basis of Presentation - Pro For

Basis of Presentation - Pro Forma Information (Details) - Riverbend Acquisition - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Supplementary pro forma information:
Net interest income	$ 159,404	$ 151,982
Non-interest (loss) income	(154,934)	405,092
Net (loss) income	$ (161,599)	$ 322,959

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended				24 Months Ended
	May 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2013	Dec. 31, 2015
Significant Accounting Policies [Line Items]
Risk-sharing arrangement term						10 years
SPE, assets		$ 30,000	$ 34,000
SPE, liabilities		$ 6,000	7,000
Incentive Plan, mandatory holding period before awards vest	3 years
Employee Stock Purchase Plan, percentage of common stock fair value that employees can purchase					85%
Employees maximum 401(k) contribution		100%
Employer matching contributions		$ 2,000	1,000	$ 1,000
Borrowings		1,746,145	$ 1,650,576
BPL bridge loans
Significant Accounting Policies [Line Items]
Borrowings		745,000
Trust Preferred Securities and Subordinated Notes
Significant Accounting Policies [Line Items]
Borrowings		$ 139,500
Minimum
Significant Accounting Policies [Line Items]
Business purpose loans term		3 years
Business purpose maturity loan term		12 years
Percentage of losses assumed on pool of loans sold						1%
Incentive Plan, awards vesting period (in years)	3 years
Maximum
Significant Accounting Policies [Line Items]
Business purpose loans term		30 years
Business purpose maturity loan term		36 months
Percentage of losses assumed on pool of loans sold						2.25%
Incentive Plan, awards vesting period (in years)	4 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 20,830	$ 26,467
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(16,855)	(3,317)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(241,536)	(575,534)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(241,536)	(575,534)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		226,625	574,629
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		4,518	895
Net Amount		(10,393)	(10)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		14,625	18,929
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		14,625	18,929
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(5,944)	(16,046)
Net Amount		8,681	1,632
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		0	(1,251)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		0	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0	1,251
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		0	0
Net Amount		0	0
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		1,893	2,880
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		1,893	2,880
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(1,873)	(633)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0	(704)
Net Amount		20	1,543
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(16,784)	(658)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(16,784)	(658)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,873	633
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		4,518	15
Net Amount		(10,393)	(10)
Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		3,976	25
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		3,976	25
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(57)	(25)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		0	0
Net Amount		3,919	0
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(57)	(905)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(57)	(905)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		57	25
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		0	880
Net Amount		0	0
Interest Rate Agreement, TBAs, And Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		20,494	21,834
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		20,494	21,834
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(1,930)	(1,909)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Received		(5,944)	(16,750)
Net Amount		12,620	3,175
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(224,695)	(572,720)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(224,695)	(572,720)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		224,695	572,720
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral Pledged		0	0
Net Amount		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) partnership entity	Dec. 31, 2021 USD ($) entity	Dec. 31, 2018 partnership
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2		2
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
VIE, ownership interest rate (as a percent)	80%
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred | entity	46
Number of securitization entities called | entity	3
Unpaid principal balance of securitizations purchased	$ 102
Gain (loss) on securitization of financial assets	0.3
Loans held for sale, fair value of acquired loans	153
Committed loans	$ 135
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | entity	2
VIE, ownership interest rate (as a percent)	80%
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of entities called | entity		2
Unpaid principal balance of entities called		$ 91

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entity's (Details) $ in Thousands		Dec. 31, 2022 USD ($) investment		Dec. 31, 2021 USD ($) investment		Dec. 31, 2020 USD ($)
Variable Interest Entity [Line Items]
Home equity investments		$ 403,462		$ 192,740
Other investments	[1]	390,938		449,229
Cash and cash equivalents		258,894	[1]	450,485	[1]	$ 461,000
Restricted cash		70,470	[1]	80,999	[1]	$ 83,000
Accrued interest receivable		60,893		47,515
Other assets	[1]	211,240		231,117
Total Assets	[1]	13,030,899		14,706,944
Short-term debt	[1]	2,029,679		2,177,362
Accrued interest payable		46,612		39,297
Accrued expenses and other liabilities	[1]	180,203		245,788
Asset-backed securities issued	[1]	7,986,752		9,253,557
Total liabilities	[1]	$ 11,946,914		13,320,857
Securitizations that did not elect CFE | investment		2
CAFL
Variable Interest Entity [Line Items]
Fair value of securities owned		$ 304,000		302,000
Freddie Mac SLST
Variable Interest Entity [Line Items]
Fair value of securities owned		323,000		445,000
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	4,968,513		4,432,680
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets		9,257,291		10,661,081
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		132,627
Other investments		301,213		544,307
Cash and cash equivalents		13,475		6,481
Restricted cash		29,862		46,086
Accrued interest receivable		36,392		35,401
Other assets		25,397		41,826
Total Assets		9,257,291		10,661,081
Short-term debt		206,510		294,447
Accrued interest payable		25,300		25,018
Accrued expenses and other liabilities		51,714		46,325
Asset-backed securities issued		7,986,752		9,253,557
Total liabilities		8,270,276		9,619,347
Estimated fair value of investments		$ 979,267		$ 1,033,913
Number of VIEs | investment		64		60
Variable Interest Entity, Primary Beneficiary | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 4,832,407		$ 5,747,150
Variable Interest Entity, Primary Beneficiary | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,461,367		3,766,316
Variable Interest Entity, Primary Beneficiary | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		424,551		473,514
Variable Interest Entity, Primary Beneficiary | Legacy Sequoia | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		0		0
Cash and cash equivalents		0		0
Restricted cash		69		148
Accrued interest receivable		284		210
Other assets		637		61
Total Assets		185,922		230,874
Short-term debt		0		0
Accrued interest payable		282		99
Accrued expenses and other liabilities		0		0
Asset-backed securities issued		184,191		227,881
Total liabilities		184,473		227,980
Estimated fair value of investments		$ 1,285		$ 2,634
Number of VIEs | investment		20		20
Variable Interest Entity, Primary Beneficiary | Legacy Sequoia | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 184,932		$ 230,455
Variable Interest Entity, Primary Beneficiary | Legacy Sequoia | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Legacy Sequoia | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Sequoia | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		0		0
Cash and cash equivalents		0		0
Restricted cash		73		5
Accrued interest receivable		11,227		10,885
Other assets		0		0
Total Assets		3,201,717		3,639,355
Short-term debt		0		0
Accrued interest payable		8,880		8,452
Accrued expenses and other liabilities		81		5
Asset-backed securities issued		2,971,109		3,383,048
Total liabilities		2,980,070		3,391,505
Estimated fair value of investments		$ 219,299		$ 245,417
Number of VIEs | investment		17		16
Variable Interest Entity, Primary Beneficiary | Sequoia | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 3,190,417		$ 3,628,465
Variable Interest Entity, Primary Beneficiary | Sequoia | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Sequoia | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | CAFL | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		0		0
Cash and cash equivalents		710		0
Restricted cash		26,296		15,221
Accrued interest receivable		18,102		15,737
Other assets		14,265		32,510
Total Assets		3,520,740		3,829,784
Short-term debt		0		0
Accrued interest payable		10,918		11,030
Accrued expenses and other liabilities		4,559		1,171
Asset-backed securities issued		3,115,807		3,474,898
Total liabilities		3,131,284		3,487,099
Estimated fair value of investments		$ 385,927		$ 339,419
Number of VIEs | investment		19		16
Variable Interest Entity, Primary Beneficiary | CAFL | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0		$ 0
Variable Interest Entity, Primary Beneficiary | CAFL | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,461,367		3,766,316
Variable Interest Entity, Primary Beneficiary | CAFL | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		0		0
Cash and cash equivalents		0		0
Restricted cash		0		0
Accrued interest receivable		5,144		5,792
Other assets		2,898		2,028
Total Assets		1,465,100		1,896,050
Short-term debt		0		0
Accrued interest payable		3,561		4,055
Accrued expenses and other liabilities		0		0
Asset-backed securities issued		1,222,150		1,588,463
Total liabilities		1,225,711		1,592,518
Estimated fair value of investments		$ 237,807		$ 301,795
Number of VIEs | investment		3		3
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 1,457,058		$ 1,888,230
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Freddie Mac K-Series | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		0		0
Cash and cash equivalents		0		0
Restricted cash		0		0
Accrued interest receivable		1,293		1,315
Other assets		0		0
Total Assets		425,844		474,829
Short-term debt		0		0
Accrued interest payable		1,167		1,190
Accrued expenses and other liabilities		0		0
Asset-backed securities issued		392,785		441,857
Total liabilities		393,952		443,047
Estimated fair value of investments		$ 31,767		$ 31,657
Number of VIEs | investment		1		1
Variable Interest Entity, Primary Beneficiary | Freddie Mac K-Series | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0		$ 0
Variable Interest Entity, Primary Beneficiary | Freddie Mac K-Series | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Freddie Mac K-Series | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		424,551		473,514
Variable Interest Entity, Primary Beneficiary | Servicing Investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		0
Other investments		301,213		384,754
Cash and cash equivalents		12,765		6,481
Restricted cash		0		25,420
Accrued interest receivable		342		1,462
Other assets		7,547		7,177
Total Assets		321,867		425,294
Short-term debt		206,510		294,447
Accrued interest payable		492		192
Accrued expenses and other liabilities		24,745		28,115
Asset-backed securities issued		0		0
Total liabilities		231,747		322,754
Estimated fair value of investments		$ 90,120		$ 102,540
Number of VIEs | investment		3		3
Variable Interest Entity, Primary Beneficiary | Servicing Investment | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0		$ 0
Variable Interest Entity, Primary Beneficiary | Servicing Investment | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | Servicing Investment | Consolidated Agency multifamily loans | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | HEI | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		132,627
Other investments		0		159,553
Cash and cash equivalents		0		0
Restricted cash		3,424		5,292
Accrued interest receivable		0		0
Other assets		50		50
Total Assets		136,101		164,895
Short-term debt		0		0
Accrued interest payable		0		0
Accrued expenses and other liabilities		22,329		17,034
Asset-backed securities issued		100,710		137,410
Total liabilities		123,039		154,444
Estimated fair value of investments		$ 13,062		$ 10,451
Number of VIEs | investment		1		1
Fair value of securities owned		$ 13,000
Variable Interest Entity, Primary Beneficiary | HEI | Residential loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		$ 0
Variable Interest Entity, Primary Beneficiary | HEI | Business purpose loans, held-for-investment | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0		0
Variable Interest Entity, Primary Beneficiary | HEI | Consolidated Agency multifamily loans | 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 December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, 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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Interest income	$ 707,854	$ 574,926	$ 571,916
Interest expense	(552,400)	(426,749)	(448,005)
Net Interest Income	155,454	148,177	123,911
Investment fair value changes, net	(175,558)	128,049	(588,438)
Total non-interest (loss) income, net	(162,679)	393,804	(475,354)
General and administrative expenses	(140,908)	(165,218)	(113,498)
Net (Loss) Income	(163,520)	319,613	(581,847)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	495,956	400,292	391,191
Interest expense	(380,213)	(310,795)	(310,141)
Net Interest Income	115,743	89,497	81,050
Investment fair value changes, net	(146,574)	90,121	(167,856)
Other income	1,014	72
Total non-interest (loss) income, net	(145,560)	90,193	(167,856)
General and administrative expenses	(189)	(283)	(867)
Other expenses	(1,695)	(1,689)	193
Net (Loss) Income	(31,701)	177,718	(87,480)
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	5,672	4,709	9,061
Interest expense	(5,206)	(3,040)	(5,945)
Net Interest Income	466	1,669	3,116
Investment fair value changes, net	(1,302)	(1,558)	(1,512)
Other income	0	0
Total non-interest (loss) income, net	(1,302)	(1,558)	(1,512)
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	(836)	111	1,604
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	126,120	74,025	87,093
Interest expense	(111,060)	(59,949)	(73,643)
Net Interest Income	15,060	14,076	13,450
Investment fair value changes, net	(23,818)	14,176	(13,244)
Other income	0	0
Total non-interest (loss) income, net	(23,818)	14,176	(13,244)
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	(8,758)	28,252	206
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	248,220	207,202	136,950
Interest expense	(184,069)	(160,618)	(105,732)
Net Interest Income	64,151	46,584	31,218
Investment fair value changes, net	(34,749)	8,521	(39,574)
Other income	1,014	72
Total non-interest (loss) income, net	(33,735)	8,593	(39,574)
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	30,416	55,177	(8,356)
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	65,821	76,287	85,609
Interest expense	(52,901)	(64,635)	(66,859)
Net Interest Income	12,920	11,652	18,750
Investment fair value changes, net	(76,777)	62,374	(21,160)
Other income	0	0
Total non-interest (loss) income, net	(76,777)	62,374	(21,160)
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	(63,857)	74,026	(2,410)
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	18,938	19,266	54,813
Interest expense	(17,407)	(17,686)	(51,521)
Net Interest Income	1,531	1,580	3,292
Investment fair value changes, net	110	11,599	(81,039)
Other income	0	0
Total non-interest (loss) income, net	110	11,599	(81,039)
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	1,641	13,179	(77,747)
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	31,185	18,803	17,665
Interest expense	(9,570)	(4,867)	(6,441)
Net Interest Income	21,615	13,936	11,224
Investment fair value changes, net	(12,953)	(5,209)	(11,327)
Other income	0	0
Total non-interest (loss) income, net	(12,953)	(5,209)	(11,327)
General and administrative expenses	(189)	(283)	(867)
Other expenses	(1,695)	(1,689)	193
Net (Loss) Income	6,778	6,755	(777)
HEI | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	0	0	0
Interest expense	0	0	0
Net Interest Income	0	0	0
Investment fair value changes, net	2,915	218	0
Other income	0	0
Total non-interest (loss) income, net	2,915	218	0
General and administrative expenses	0	0	0
Other expenses	0	0	0
Net (Loss) Income	$ 2,915	$ 218	$ 0

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 0	$ 1,231,803
Trading securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	0	7,774
AFS Securities
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 0	$ 1,600

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 0	$ 1,266,063
MSR fees received	3,069	5,003
Funding of compensating interest, net	(45)	(160)
Cash flows received on retained securities	$ 22,866	$ 47,596

Principles of Consolidation -_3

Principles of Consolidation - Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary	12 Months Ended
	Dec. 31, 2021
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%
Discount rates	15%
Credit loss assumptions	0.23%
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%
Discount rates	6%
Credit loss assumptions	0.23%

Principles of Consolidation -_4

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Debt securities, available for sale	$ 132,146	$ 206,792
Total Subordinate
Assets
Debt securities, available for sale	132,146	206,792
Variable Interest Entity, Not Primary Beneficiary
Assets
Maximum loss exposure	114,678	152,206
Assets transferred:
Principal balance of loans outstanding	4,052,922	4,959,234
Principal balance of loans 30+ days delinquent	27,739	30,594
Variable Interest Entity, Not Primary Beneficiary | Total Subordinate
Assets
Debt securities, available for sale	74,367	127,542
Interest-only, senior and subordinate securities, classified as trading | Variable Interest Entity, Not Primary Beneficiary
Assets
Debt securities, trading	28,722	18,214
Mortgage servicing rights
Assets
Servicing asset, fair value	25,421	12,438
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
Assets
Servicing asset, fair value	$ 11,589	$ 6,450

Principles of Consolidation - K

Principles of Consolidation - Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
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	$ 11,589	$ 6,450
Expected life (in years)	7 years	3 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	29%
Decrease in fair value from:
10% adverse change	$ 311	$ 447
25% adverse change	$ 779	$ 1,020
Discount rate assumption (as a percent)	11%	12%
Decrease in fair value from:
100 basis point increase	$ 430	$ 152
200 basis point increase	$ 832	$ 297
MSRs | Minimum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	10%	10%
Decrease in fair value from:
Impact of increase in discount rate assumption	1%	1%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	10%	10%
MSRs | Maximum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	25%	25%
Decrease in fair value from:
Impact of increase in discount rate assumption	2%	2%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	25%	25%
Senior IO Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 28,722	$ 18,214
Expected life (in years)	7 years	4 years
Prepayment speed assumption (annual CPR) (as a percent)	10%	23%
Decrease in fair value from:
10% adverse change	$ 970	$ 1,130
25% adverse change	$ 2,344	$ 2,596
Discount rate assumption (as a percent)	12%	16%
Decrease in fair value from:
100 basis point increase	$ 980	$ 426
200 basis point increase	$ 1,894	$ 829
Credit loss assumption (as a percent)	0.03%	0.35%
Senior IO Securities | Minimum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	10%	10%
Decrease in fair value from:
Impact of increase in discount rate assumption	1%	1%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	10%	10%
Senior IO Securities | Maximum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	25%	25%
Decrease in fair value from:
Impact of increase in discount rate assumption	2%	2%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	25%	25%
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	$ 74,367	$ 127,542
Expected life (in years)	16 years	5 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	32%
Decrease in fair value from:
10% adverse change	$ 386	$ 531
25% adverse change	$ 907	$ 1,440
Discount rate assumption (as a percent)	9%	5%
Decrease in fair value from:
100 basis point increase	$ 7,198	$ 4,801
200 basis point increase	$ 13,394	$ 9,139
Credit loss assumption (as a percent)	0.03%	0.35%
Decrease in fair value from:
10% higher losses	$ 31	$ 1,528
25% higher losses	$ 76	$ 3,819
Subordinate Securities | Minimum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	10%	10%
Decrease in fair value from:
Impact of increase in discount rate assumption	1%	1%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	10%	10%
Subordinate Securities | Maximum
Decrease in fair value from:
Impact of adverse change in prepayment speed (as a percent)	25%	25%
Decrease in fair value from:
Impact of increase in discount rate assumption	2%	2%
Decrease in fair value from:
Impact of adverse change in expected credit losses (as a percent)	25%	25%

Principles of Consolidation -_5

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 240,475	$ 377,411
Real estate securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		144,468	242,055
Real estate securities | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		145	3,572
Real estate securities | Subordinate | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		137,241	228,083
Real estate securities | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		137,386	231,655
Real estate securities | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 7,082	$ 10,400
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, 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		Dec. 31, 2022	Dec. 31, 2021
Assets
Real estate securities, at fair value		$ 108,329	$ 170,619
Shared home appreciation options	[1]	403,462	192,740
Derivative assets	[1]	20,830	26,467
Liabilities
Derivative liabilities	[1]	16,855	3,317
ABS issued, net, At fair value		7,424,132	8,843,147
Residential loans, held-for-sale at fair value
Assets
Loans, held-for-investment		775,545	1,838,797
Residential Loans
Assets
MSRs		269,259	350,923
Carrying Value
Assets
Real estate securities, at fair value		240,475	377,411
Other investments		6,155	12,663
Cash and cash equivalents		258,894	450,485
Restricted cash		70,470	80,999
Derivative assets		20,830	26,467
Margin receivable		13,802	7,269
Liabilities
Margin payable		5,944	24,368
Guarantee obligation		6,344	7,459
Derivative liabilities		16,855	3,317
ABS issued, net, At fair value		7,424,132	8,843,147
ABS issued, at amortized cost		562,620	410,410
Other long-term debt, net		1,077,200	988,483
Other long-term debt, net		693,473	513,629
Trust preferred securities and subordinated notes, net		138,767	138,721
Carrying Value | HEI at Redwood
Assets
Shared home appreciation options		403,462	192,740
Liabilities
HEI securitization non-controlling interest		22,329	17,035
Carrying Value | Servicer advance investments
Assets
MSRs		269,259	350,923
Carrying Value | MSRs
Assets
MSRs		25,421	12,438
Carrying Value | Excess MSRs
Assets
Other assets		39,035	44,231
Carrying Value | REO
Assets
Other assets		6,455	36,126
Carrying Value | Credit facilities
Liabilities
Short-term debt		1,853,664	2,177,362
Carrying Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		780,781	1,845,248
Carrying Value | Residential Loans | Residential loans, held-for-investment, at fair value
Assets
Loans, held-for-investment		4,832,407	5,747,150
Carrying Value | Residential Loans | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		364,073	358,309
Carrying Value | Residential Loans | Business purpose loans, held-for-investment, at fair value
Assets
Loans, held-for-investment		4,968,513	4,432,680
Carrying Value | Residential Loans | Multifamily securities
Assets
Loans, held-for-investment		424,551	473,514
Fair Value
Assets
Real estate securities, at fair value		240,475	377,411
Other investments		6,155	12,663
Cash and cash equivalents		258,894	450,485
Restricted cash		70,470	80,999
Derivative assets		20,830	26,467
Margin receivable		13,802	7,269
Liabilities
Margin payable		5,944	24,368
Guarantee obligation		4,738	7,133
Derivative liabilities		16,855	3,317
ABS issued, net, At fair value		7,424,132	8,843,147
ABS issued, at amortized cost		524,768	410,471
Other long-term debt, net		1,069,946	989,570
Other long-term debt, net		638,049	537,300
Trust preferred securities and subordinated notes, net		83,700	97,650
Fair Value | HEI at Redwood
Assets
Shared home appreciation options		403,462	192,740
Liabilities
HEI securitization non-controlling interest		22,329	17,035
Fair Value | Servicer advance investments
Assets
MSRs		269,259	350,923
Fair Value | MSRs
Assets
MSRs		25,421	12,438
Fair Value | Excess MSRs
Assets
Other assets		39,035	44,231
Fair Value | REO
Assets
Other assets		4,185	39,272
Fair Value | Credit facilities
Liabilities
Short-term debt		1,853,664	2,177,362
Fair Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		780,781	1,845,248
Fair Value | Residential Loans | Residential loans, held-for-investment, at fair value
Assets
Loans, held-for-investment		4,832,407	5,747,150
Fair Value | Residential Loans | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		364,073	358,309
Fair Value | Residential Loans | Business purpose loans, held-for-investment, at fair value
Assets
Loans, held-for-investment		4,968,513	4,432,680
Fair Value | Residential Loans | Multifamily securities
Assets
Loans, held-for-investment		$ 424,551	$ 473,514
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other investments	[1]	$ 390,938	$ 449,229
Carrying Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other investments		6,155	12,663
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset		5,000	59,000
Residential Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset		3,700,000	12,920,000
Business purpose residential loans, held-for-sale, at fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset		2,900,000	2,220,000
Acquisitions		181,814	136,685
HEIs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions		248,218	155,023
MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions			$ 15,000
Excess MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset		$ 5,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Assets
Real estate securities, at fair value		$ 108,329	$ 170,619
Other investments	[1]	390,938	449,229
Derivative assets	[1]	20,830	26,467
Liabilities
Derivative liabilities	[1]	16,855	3,317
ABS issued		7,424,132	8,843,147
Fair Value, Measurements, Recurring
Assets
Business purpose loans		5,332,586	4,790,989
Consolidated Agency multifamily loans		424,551	473,514
Real estate securities, at fair value		240,475	377,411
Servicer advance investments		269,259	350,923
MSRs		25,421	12,438
Excess MSRs		39,035	44,231
HEIs		403,462	192,740
Other investments		6,155	17,574
Derivative assets		20,830	26,467
Liabilities
HEI securitization non-controlling interest		22,329	17,035
Derivative liabilities		16,855	3,317
ABS issued		7,424,132	8,843,147
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		5,613,157	7,592,398
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose loans		0	0
Consolidated Agency multifamily loans		0	0
Real estate securities, at fair value		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		5,869	2,906
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		16,841	1,563
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
Consolidated Agency multifamily loans		0	0
Real estate securities, at fair value		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		14,625	18,928
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		0	1,251
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		5,332,586	4,790,989
Consolidated Agency multifamily loans		424,551	473,514
Real estate securities, at fair value		240,475	377,411
Servicer advance investments		269,259	350,923
MSRs		25,421	12,438
Excess MSRs		39,035	44,231
HEIs		403,462	192,740
Other investments		6,155	17,574
Derivative assets		336	4,633
Liabilities
HEI securitization non-controlling interest		22,329	17,035
Derivative liabilities		14	503
ABS issued		7,424,132	8,843,147
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 5,613,157	$ 7,592,398
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
HEI Securitization Non-Controlling Interest
Liabilities
Beginning balance	$ 17,035	$ 0
Acquisitions	0	16,639
Principal paydowns	0	0
Gains (losses) in net income (loss), net	5,294	396
Other settlements, net	0	0
Ending Balance	22,329	17,035
ABS Issued
Liabilities
Beginning balance	8,843,147	6,900,362
Acquisitions	1,205,289	4,202,070
Principal paydowns	(1,394,000)	(1,922,313)
Gains (losses) in net income (loss), net	(1,230,304)	(336,972)
Other settlements, net	0	0
Ending Balance	7,424,132	8,843,147
Residential Loans
Assets
Beginning balance	7,592,398	4,249,014
Acquisitions	3,692,104	13,139,907
Originations	0	0
Sales	(3,830,318)	(8,449,328)
Principal paydowns	(866,474)	(1,360,649)
Gains (losses) in net income (loss), net	(970,241)	16,688
Unrealized losses in OCI, net	0	0
Other settlements, net	(4,312)	(3,234)
Ending Balance	5,613,157	7,592,398
Business Purpose Loans
Assets
Beginning balance	4,790,989	4,136,353
Acquisitions	181,814	136,685
Originations	2,715,817	2,150,539
Sales	(495,472)	(211,113)
Principal paydowns	(1,324,640)	(1,307,566)
Gains (losses) in net income (loss), net	(531,947)	(77,357)
Unrealized losses in OCI, net	0	0
Other settlements, net	(3,975)	(36,552)
Ending Balance	5,332,586	4,790,989
Multifamily securities
Assets
Beginning balance	473,514	492,221
Acquisitions	0	0
Originations	0	0
Sales	0	0
Principal paydowns	(7,975)	(7,639)
Gains (losses) in net income (loss), net	(40,987)	(11,068)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	424,552	473,514
Trading securities
Assets
Beginning balance	170,619	125,667
Acquisitions	5,006	58,917
Originations	0	0
Sales	(31,729)	(34,802)
Principal paydowns	(1,347)	(2,713)
Gains (losses) in net income (loss), net	(34,220)	23,550
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	108,329	170,619
AFS Securities
Assets
Beginning balance	206,792	218,458
Acquisitions	10,000	19,100
Originations	0	0
Sales	0	(4,785)
Principal paydowns	(31,390)	(57,953)
Gains (losses) in net income (loss), net	13,660	40,735
Unrealized losses in OCI, net	(66,916)	(8,763)
Other settlements, net	0	0
Ending Balance	132,146	206,792
Servicer advance investments
Assets
Beginning balance	350,923	231,489
Acquisitions	0	196,583
Originations	0	0
Sales	0	0
Principal paydowns	(70,589)	(76,223)
Gains (losses) in net income (loss), net	(11,075)	(926)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	269,259	350,923
Excess MSRs
Assets
Beginning balance	44,231	34,418
Acquisitions	0	17,830
Originations	0	0
Sales	0	0
Principal paydowns	0	0
Gains (losses) in net income (loss), net	(5,196)	(8,017)
Unrealized losses in OCI, net	0	0
Other settlements, net	0	0
Ending Balance	39,035	44,231
HEIs
Assets
Beginning balance	192,740	42,440
Acquisitions	248,218	155,023
Originations	0	0
Sales	0	0
Principal paydowns	(42,744)	(19,395)
Gains (losses) in net income (loss), net	5,248	13,774
Unrealized losses in OCI, net	0	0
Other settlements, net	0	898
Ending Balance	403,462	192,740
MSRs and Other Investments
Assets
Beginning balance	25,101	27,662
Acquisitions	8,638	15,215
Originations	(3,299)	0
Sales	0	0
Principal paydowns	(158)	(14,751)
Gains (losses) in net income (loss), net	9,873	(2,846)
Unrealized losses in OCI, net	0	0
Other settlements, net	(8,579)	(179)
Ending Balance	31,576	25,101
Derivatives
Assets
Beginning balance	4,130	14,450
Acquisitions	0	0
Principal paydowns	0	0
Gains (losses) in net income (loss), net	(55,209)	10,437
Other settlements, net	51,401	(20,757)
Ending Balance	$ 322	$ 4,130

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loan purchase and interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	$ (14)	$ (503)	$ (577)
Non-controlling interest in consolidated HEI entity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 liability	(5,294)	(396)	0
Net investments in HEI securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	8,210	614	0
Residential loans, held-for-investment, at fair value | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(43,019)	5,886	1,138
Residential loans, held-for-investment, at fair value | Net investments in consolidated Sequoia entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(25,563)	12,455	(14,646)
Residential loans, held-for-investment, at fair value | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(76,811)	62,124	(21,220)
Business purpose loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(31,927)	9,444	9,420
Multifamily securities | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	110	11,599	(9,309)
Single-family rental loans | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(34,899)	8,198	(37,062)
Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(34,027)	738	(83,327)
AFS Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(2,540)	0	(388)
Servicer advance investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(11,076)	(926)	(8,902)
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	9,804	629	(17,545)
Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(5,196)	(8,017)	(8,302)
Shared home appreciation options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(670)	212	(1,884)
Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	(901)	(6)	(285)
Loan purchase and interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain (loss) attributable to Level 3 asset	$ 336	$ 4,633	$ 15,027

Fair Value of Financial Instr_8

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Strategic investments
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 17,600
Gain (loss) on assets measured at fair value on a non-recurring basis	9,965
Strategic investments | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0
Strategic investments | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	0
Strategic investments | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets	$ 17,600
REO
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets		$ 588
Gain (loss) on assets measured at fair value on a non-recurring basis		(217)
REO | Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets		0
REO | Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets		0
REO | Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Other assets		$ 588

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ 14,879	$ 2,380	$ (9,694)
Total Market Valuation Gains (Losses), Net	(227,186)	321,433	(541,399)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(58,648)	196,566	66,482
Mortgage Banking Activities, Net | Residential 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	(77,192)	73,332	(15,477)
Mortgage Banking Activities, Net | Residential loan purchase and commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(54,484)	10,401	56,761
Mortgage Banking Activities, Net | BPL term 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	(91,025)	63,206	82,169
Mortgage Banking Activities, Net | BPL term loan interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(666)	666	341
Mortgage Banking Activities, Net | BPL bridge loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	3,026	8,253	(4,998)
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	4,249	(352)	(4,535)
Mortgage Banking Activities, Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	157,444	41,060	(47,779)
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(175,557)	128,049	(588,438)
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	(38,471)	23,935	(226,196)
Investment Fair Value Changes, Net | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	26,152	0	(59,142)
Investment Fair Value Changes, Net | Residential loans held-for-investment at Redwood (called Sequoia loans)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(16,651)	2,812	(93,314)
Investment Fair Value Changes, Net | Business purpose loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(7,271)	(65)	(31,435)
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	(11,075)	(925)	(8,901)
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	(5,196)	(8,017)	(8,302)
Investment Fair Value Changes, Net | Net investments in Legacy Sequoia entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(1,302)	(1,558)	(1,513)
Investment Fair Value Changes, Net | Net investments in Sequoia Choice entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(23,818)	14,176	(13,244)
Investment Fair Value Changes, Net | Net investments in Freddie Mac SLST entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(76,777)	62,374	(21,160)
Investment Fair Value Changes, Net | Net investments in Freddie Mac K-Series entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	110	11,599	(81,039)
Investment Fair Value Changes, Net | Net investments in CAFL entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(34,899)	10,271	(36,754)
Investment Fair Value Changes, Net | Net investments in HEI securitization entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	2,915	218	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	(202)	13,207	(1,883)
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	13,468	(366)	(5,167)
Investment Fair Value Changes, Net | Credit losses on AFS securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(2,540)	388	(388)
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	7,019	(3,182)	(19,443)
Other Income | Risk management derivatives, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	0	0	13,966
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	8,560	(3,182)	(33,409)
Other Income | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights income (loss), net	$ (1,541)	$ 0	$ 0

Fair Value of Financial Inst_10

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / loan	Dec. 31, 2021 USD ($)
Assets
ABS issued | $	$ 7,424,132	$ 8,843,147
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | HEI
Liabilities
Fair value of securities owned | $	13,000
ABS Issued Securities
Liabilities
ABS issued | $	$ 3,155,300
ABS Issued Securities | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs	0.05
ABS Issued Securities | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs	0.23
ABS Issued Securities | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs	0.10
ABS Issued Securities | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs	0.04
ABS Issued Securities | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs	0.18
ABS Issued Securities | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.07
ABS Issued Securities | Default rate | Minimum
Liabilities
ABS issued, measurement inputs	0
ABS Issued Securities | Default rate | Maximum
Liabilities
ABS issued, measurement inputs	0.14
ABS Issued Securities | Default rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.01
ABS Issued Securities | Loss severity | Minimum
Liabilities
ABS issued, measurement inputs	0.25
ABS Issued Securities | Loss severity | Maximum
Liabilities
ABS issued, measurement inputs	0.50
ABS Issued Securities | Loss severity | Weighted Average
Liabilities
ABS issued, measurement inputs	0.32
CAFL
Liabilities
ABS issued | $	$ 2,638,183
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs	0
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs	0.03
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs	0.002
CAFL | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs	0.02
CAFL | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs	0.23
CAFL | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.07
CAFL | Default rate | Minimum
Liabilities
ABS issued, measurement inputs	0.05
CAFL | Default rate | Maximum
Liabilities
ABS issued, measurement inputs	0.23
CAFL | Default rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.08
CAFL | Loss severity | Minimum
Liabilities
ABS issued, measurement inputs	0.27
CAFL | Loss severity | Maximum
Liabilities
ABS issued, measurement inputs	0.40
CAFL | Loss severity | Weighted Average
Liabilities
ABS issued, measurement inputs	0.30
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,137,154
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs	0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs	0.07
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs	0.06
Freddie Mac SLST | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs	0.05
Freddie Mac SLST | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs	0.16
Freddie Mac SLST | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.06
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement inputs	0.13
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement inputs	0.14
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.14
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement inputs	0.35
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement inputs	0.35
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement inputs	0.35
Freddie Mac K-Series
Liabilities
ABS issued | $	$ 392,785
Freddie Mac K-Series | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs	0.03
Freddie Mac K-Series | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs	0.10
Freddie Mac K-Series | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.05
Consolidated Point Entities
Liabilities
ABS issued | $	$ 100,710
Consolidated Point Entities | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement inputs	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement inputs	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement inputs	0.20
Consolidated Point Entities | Discount rate | Minimum
Liabilities
ABS issued, measurement inputs	0.09
Consolidated Point Entities | Discount rate | Maximum
Liabilities
ABS issued, measurement inputs	0.15
Consolidated Point Entities | Discount rate | Weighted Average
Liabilities
ABS issued, measurement inputs	0.10
Consolidated Point Entities | Home price appreciation | Minimum
Liabilities
ABS issued, measurement inputs	(0.07)
Consolidated Point Entities | Home price appreciation | Maximum
Liabilities
ABS issued, measurement inputs	0.04
Consolidated Point Entities | Home price appreciation | Weighted Average
Liabilities
ABS issued, measurement inputs	0.03
Jumbo fixed-rate loans
Assets
ABS issued | $	$ 643,845
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0252
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0252
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0252
Jumbo fixed-rate loans | CRT dollar price | Minimum
Assets
Loans held-for-sale, measurement input	91
Jumbo fixed-rate loans | CRT dollar price | Maximum
Assets
Loans held-for-sale, measurement input	91
Jumbo fixed-rate loans | CRT dollar price | Weighted Average
Assets
Loans held-for-sale, measurement input	91
Jumbo loans committed to sell
Assets
Loans, held-for-investment | $	$ 136,905
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Loans held-for-sale, measurement input	94
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Loans held-for-sale, measurement input	101
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Loans held-for-sale, measurement input	94
Legacy Sequoia
Assets
Loans, held-for-investment | $	$ 184,932
Sequoia
Assets
Loans, held-for-investment | $	3,190,417
Liabilities
Fair value of securities owned | $	219,000
Freddie Mac SLST
Assets
Loans, held-for-investment | $	1,457,058
Liabilities
Fair value of securities owned | $	323,000	445,000
BPL term loans
Assets
Loans, held-for-investment | $	$ 358,791
BPL term loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.03
BPL term loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.03
BPL term loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.03
BPL term loans | Senior credit spread | Minimum
Assets
Loans receivable, measurement input	0.0175
BPL term loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0275
BPL term loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0225
BPL term loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0225
BPL term loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.0962
BPL term loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0431
BPL term loans | Senior credit support | Minimum
Assets
Loans receivable, measurement input	0.36
BPL term loans | Senior credit support | Maximum
Assets
Loans receivable, measurement input	0.36
BPL term loans | Senior credit support | Weighted Average
Assets
Loans receivable, measurement input	0.36
BPL term loans | IO discount rate | Minimum
Assets
Loans receivable, measurement input	0.09
BPL term loans | IO discount rate | Maximum
Assets
Loans receivable, measurement input	0.10
BPL term loans | IO discount rate | Weighted Average
Assets
Loans receivable, measurement input	0.08
BPL term loans | Whole loan spread | Minimum
Assets
Loans receivable, measurement input	0.0275
BPL term loans | Whole loan spread | Maximum
Assets
Loans receivable, measurement input	0.0550
BPL term loans | Whole loan spread | Weighted Average
Assets
Loans receivable, measurement input	0.0361
CAFL
Assets
Loans, held-for-investment | $	$ 2,944,984
Liabilities
Fair value of securities owned | $	304,000	$ 302,000
Residential Bridge, Held-for-investment at fair value
Assets
Loans, held-for-investment | $	$ 2,028,811
Residential Bridge, Held-for-investment at fair value | Prepayment rate (annual CPR) | Minimum
Assets
Loans held-for-investment, measurement input	0
Residential Bridge, Held-for-investment at fair value | Prepayment rate (annual CPR) | Maximum
Assets
Loans held-for-investment, measurement input	0
Residential Bridge, Held-for-investment at fair value | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans held-for-investment, measurement input	0
Residential Bridge, Held-for-investment at fair value | Senior credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0310
Residential Bridge, Held-for-investment at fair value | Senior credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.0310
Residential Bridge, Held-for-investment at fair value | Senior credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0310
Residential Bridge, Held-for-investment at fair value | Subordinate credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0360
Residential Bridge, Held-for-investment at fair value | Subordinate credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.1150
Residential Bridge, Held-for-investment at fair value | Subordinate credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0665
Residential Bridge, Held-for-investment at fair value | Senior credit support | Minimum
Assets
Loans held-for-investment, measurement input	0.43
Residential Bridge, Held-for-investment at fair value | Senior credit support | Maximum
Assets
Loans held-for-investment, measurement input	0.43
Residential Bridge, Held-for-investment at fair value | Senior credit support | Weighted Average
Assets
Loans held-for-investment, measurement input	0.43
Residential Bridge, Held-for-investment at fair value | Discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.05
Residential Bridge, Held-for-investment at fair value | Discount rate | Maximum
Assets
Loans held-for-investment, measurement input	0.15
Residential Bridge, Held-for-investment at fair value | Discount rate | Weighted Average
Assets
Loans held-for-investment, measurement input	0.10
Freddie Mac K-Series
Assets
Loans, held-for-investment | $	$ 424,551
Liabilities
Fair value of securities owned | $	32,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 240,475
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities, measurement inputs	0.05
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities, measurement inputs	0.65
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities, measurement inputs	0.10
Trading and AFS securities | CRT dollar price | Minimum
Assets
Trading and AFS securities, measurement inputs	72
Trading and AFS securities | CRT dollar price | Maximum
Assets
Trading and AFS securities, measurement inputs	93
Trading and AFS securities | CRT dollar price | Weighted Average
Assets
Trading and AFS securities, measurement inputs	84
Trading and AFS securities | Discount rate | Minimum
Assets
Trading and AFS securities, measurement inputs	0.06
Trading and AFS securities | Discount rate | Maximum
Assets
Trading and AFS securities, measurement inputs	0.18
Trading and AFS securities | Discount rate | Weighted Average
Assets
Trading and AFS securities, measurement inputs	0.10
Trading and AFS securities | Default rate | Minimum
Assets
Trading and AFS securities, measurement inputs	0
Trading and AFS securities | Default rate | Maximum
Assets
Trading and AFS securities, measurement inputs	0.14
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities, measurement inputs	0.005
Trading and AFS securities | Loss severity | Minimum
Assets
Trading and AFS securities, measurement inputs	0
Trading and AFS securities | Loss severity | Maximum
Assets
Trading and AFS securities, measurement inputs	0.50
Trading and AFS securities | Loss severity | Weighted Average
Assets
Trading and AFS securities, measurement inputs	0.26
Servicer advance investments
Assets
Servicing asset | $	$ 269,259
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 assets, measurement inputs	0.14
Servicer advance investments | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs	0.30
Servicer advance investments | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs	0.14
Servicer advance investments | Discount rate | Minimum
Assets
Servicing assets, measurement inputs	0.02
Servicer advance investments | Discount rate | Maximum
Assets
Servicing assets, measurement inputs	0.05
Servicer advance investments | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs	0.03
Servicer advance investments | Mortgage servicing income | Minimum
Assets
Loan purchase commitments, net, measurement inputs	0
Servicer advance investments | Mortgage servicing income | Maximum
Assets
Loan purchase commitments, net, measurement inputs	0.0018
Servicer advance investments | Mortgage servicing income | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs	0.0005
MSRs
Assets
Servicing asset | $	$ 25,421
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing assets, measurement inputs	0.04
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs	0.28
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs	0.08
MSRs | Discount rate | Minimum
Assets
Servicing assets, measurement inputs	0.11
MSRs | Discount rate | Maximum
Assets
Servicing assets, measurement inputs	0.22
MSRs | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs	0.11
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing assets, measurement inputs	93
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing assets, measurement inputs	93
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing assets, measurement inputs	93
Excess MSRs
Assets
Servicing asset | $	$ 39,035
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing assets, measurement inputs	0.10
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing assets, measurement inputs	1
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing assets, measurement inputs	0.18
Excess MSRs | Discount rate | Minimum
Assets
Servicing assets, measurement inputs	0.13
Excess MSRs | Discount rate | Maximum
Assets
Servicing assets, measurement inputs	0.19
Excess MSRs | Discount rate | Weighted Average
Assets
Servicing assets, measurement inputs	0.18
Excess MSRs | Excess mortgage servicing amount | Minimum
Assets
Servicing assets, measurement inputs	0.0008
Excess MSRs | Excess mortgage servicing amount | Maximum
Assets
Servicing assets, measurement inputs	0.0019
Excess MSRs | Excess mortgage servicing amount | Weighted Average
Assets
Servicing assets, measurement inputs	0.0011
HEIs
Assets
Home appreciation options, fair value disclosure | $	$ 270,835
HEIs | Prepayment rate (annual CPR) | Minimum
Assets
Shared home appreciation options, measurement inputs	0.01
HEIs | Prepayment rate (annual CPR) | Maximum
Assets
Shared home appreciation options, measurement inputs	0.23
HEIs | Prepayment rate (annual CPR) | Weighted Average
Assets
Shared home appreciation options, measurement inputs	0.16
HEIs | Discount rate | Minimum
Assets
Shared home appreciation options, measurement inputs	0.10
HEIs | Discount rate | Maximum
Assets
Shared home appreciation options, measurement inputs	0.10
HEIs | Discount rate | Weighted Average
Assets
Shared home appreciation options, measurement inputs	0.10
HEIs | Home price appreciation | Minimum
Assets
Shared home appreciation options, measurement inputs	(0.07)
HEIs | Home price appreciation | Maximum
Assets
Shared home appreciation options, measurement inputs	0.04
HEIs | Home price appreciation | Weighted Average
Assets
Shared home appreciation options, measurement inputs	0.03
Point Options Held By Point
Assets
Home appreciation options, fair value disclosure | $	$ 132,627
Loan purchase and interest rate lock commitments
Assets
Loan purchase commitments, net | $	$ 322
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate | Minimum
Assets
Loan purchase commitments, net, measurement inputs	0.0252
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate | Maximum
Assets
Loan purchase commitments, net, measurement inputs	0.0252
Loan purchase and interest rate lock commitments | Whole loan spread to swap rate | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs	0.0252
Loan purchase and interest rate lock commitments | Pull-through rate | Minimum
Assets
Loan purchase commitments, net, measurement inputs	0.48
Loan purchase and interest rate lock commitments | Pull-through rate | Maximum
Assets
Loan purchase commitments, net, measurement inputs	1
Loan purchase and interest rate lock commitments | Pull-through rate | Weighted Average
Assets
Loan purchase commitments, net, measurement inputs	0.94
Loan purchase and interest rate lock commitments | Committed sales price | Minimum
Assets
Loan purchase commitments, measurement input	101
Loan purchase and interest rate lock commitments | Committed sales price | Maximum
Assets
Loan purchase commitments, measurement input	101
Loan purchase and interest rate lock commitments | Committed sales price | Weighted Average
Assets
Loan purchase commitments, measurement input	101

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights		$ 803,000
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]	780,781	$ 1,845,282
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		184,932	230,455
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		3,190,417	3,628,465
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		1,457,058	1,888,230
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		5,613,188	7,592,432
Residential Loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		184,932	230,455
Residential Loans | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,190,417	3,628,465
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		1,457,058	1,888,230
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		780,781	1,845,282
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 | 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		4,832,407	5,747,150
Residential Loans | 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		184,932	230,455
Residential Loans | 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		3,190,417	3,628,465
Residential Loans | 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		1,457,058	1,888,230
Residential Loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		780,781	1,845,282
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		780,781	1,845,282
Residential Loans | Redwood | 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		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Residential Loans - Characteris

Residential Loans - Characteristics of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	994	2,196
Unpaid principal balance	$ 822,063	$ 1,813,865
Fair value of loans	780,781	1,845,282
Market value of loans pledged as collateral under short-term borrowing agreements	$ 775,545	$ 1,838,797
Weighted average coupon (as a percent)	5.12%	3.27%
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	$ 208	$ 2,923
Number of loans with 90+ day delinquencies | loan	1	3
Fair value of loans with 90+ day delinquencies	$ 170	$ 2,304

Residential Loans - Activity of

Residential Loans - Activity of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) securitization	Dec. 31, 2021 USD ($) securitization
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 3,704,196	$ 12,916,155
Principal balance of loans sold	3,858,647	8,244,221
Principal balance of loans transferred to HFI	687,192	2,957,694
Gain (loss) on assets measured at fair value on a non-recurring basis	(93,843)	76,144
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 102,000	$ 200,000
Number of seasoned securitizations | securitization	3	7

Residential Loans - Character_2

Residential Loans - Characteristics of Loans Held-for-Investment (Details) - Residential loans, held-for-investment, at fair value $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,304	1,583
Unpaid principal balance	$ 204,404	$ 264,057
Fair value of loans	$ 184,932	$ 230,455
Weighted average coupon (as a percent)	4.51%	1.54%
Number of loans in foreclosure | loan	11	10
Loans held as assets amount in foreclosure	$ 1,166	$ 2,188
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4,624	4,300
Unpaid principal balance	$ 3,847,091	$ 3,605,469
Fair value of loans	$ 3,190,417	$ 3,628,465
Weighted average coupon (as a percent)	3.25%	3.14%
Number of loans in foreclosure | loan	5	2
Loans held as assets amount in foreclosure	$ 4,654	$ 1,624
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	10,882	11,986
Unpaid principal balance	$ 1,719,236	$ 1,932,241
Fair value of loans	$ 1,457,058	$ 1,888,230
Weighted average coupon (as a percent)	4.50%	4.51%
Number of loans in foreclosure | loan	427	241
Loans held as assets amount in foreclosure	$ 72,440	$ 43,637
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	30	32
Fair value of loans with 90+ day delinquencies	$ 6,824	$ 7,482
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	10	18
Fair value of loans with 90+ day delinquencies	$ 7,799	$ 15,124
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	1,211	1,208
Fair value of loans with 90+ day delinquencies	$ 209,397	$ 212,961

Residential Loans - Activity _2

Residential Loans - Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 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	$ 2,949,262	$ 5,026,723	$ 1,868,656
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]
Valuation adjustments	(675,659)	(66,727)
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]
Valuation adjustments	(215,687)	(14,735)
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]
Valuation adjustments	12,956	12,125
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]
Transfers from loans held-for-sale to loans held-for-investment	$ 684,491	$ 3,035,100

Residential Loans - Geographic

Residential Loans - Geographic Concentration of Residential Loans Recorded on Consolidated Balance Sheet (Details) - Residential loans, held-for-investment - Geographic Concentration Risk - Loan Benchmark	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Concentration Risk [Line Items]
Concentration risk percentage	100%	100%
California
Concentration Risk [Line Items]
Concentration risk percentage	26%	29%
Texas
Concentration Risk [Line Items]
Concentration risk percentage	12%	11%
Washington
Concentration Risk [Line Items]
Concentration risk percentage	11%	8%
Colorado
Concentration Risk [Line Items]
Concentration risk percentage	9%	7%
Florida
Concentration Risk [Line Items]
Concentration risk percentage	9%	6%
New York
Concentration Risk [Line Items]
Concentration risk percentage	3%	2%
Arizona
Concentration Risk [Line Items]
Concentration risk percentage		5%
New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	1%	1%
Illinois
Concentration Risk [Line Items]
Concentration risk percentage	1%	2%
Maryland
Concentration Risk [Line Items]
Concentration risk percentage	1%	1%
Ohio
Concentration Risk [Line Items]
Concentration risk percentage	0%	0%
Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	27%	28%
Legacy Sequoia
Concentration Risk [Line Items]
Concentration risk percentage	100%	100%
Legacy Sequoia | California
Concentration Risk [Line Items]
Concentration risk percentage	18%	18%
Legacy Sequoia | Texas
Concentration Risk [Line Items]
Concentration risk percentage	6%	5%
Legacy Sequoia | Washington
Concentration Risk [Line Items]
Concentration risk percentage	1%	1%
Legacy Sequoia | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Legacy Sequoia | Florida
Concentration Risk [Line Items]
Concentration risk percentage	13%	14%
Legacy Sequoia | New York
Concentration Risk [Line Items]
Concentration risk percentage	11%	11%
Legacy Sequoia | Arizona
Concentration Risk [Line Items]
Concentration risk percentage		1%
Legacy Sequoia | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	5%	5%
Legacy Sequoia | Illinois
Concentration Risk [Line Items]
Concentration risk percentage	3%	3%
Legacy Sequoia | Maryland
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Legacy Sequoia | Ohio
Concentration Risk [Line Items]
Concentration risk percentage	5%	5%
Legacy Sequoia | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	34%	33%
Sequoia
Concentration Risk [Line Items]
Concentration risk percentage	100%	100%
Sequoia | California
Concentration Risk [Line Items]
Concentration risk percentage	35%	35%
Sequoia | Texas
Concentration Risk [Line Items]
Concentration risk percentage	12%	12%
Sequoia | Washington
Concentration Risk [Line Items]
Concentration risk percentage	5%	5%
Sequoia | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	6%	6%
Sequoia | Florida
Concentration Risk [Line Items]
Concentration risk percentage	4%	4%
Sequoia | New York
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Sequoia | Arizona
Concentration Risk [Line Items]
Concentration risk percentage		3%
Sequoia | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	1%	1%
Sequoia | Illinois
Concentration Risk [Line Items]
Concentration risk percentage	3%	4%
Sequoia | Maryland
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Sequoia | Ohio
Concentration Risk [Line Items]
Concentration risk percentage	0%	0%
Sequoia | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	30%	26%
Freddie Mac SLST
Concentration Risk [Line Items]
Concentration risk percentage	100%	100%
Freddie Mac SLST | California
Concentration Risk [Line Items]
Concentration risk percentage	14%	14%
Freddie Mac SLST | Texas
Concentration Risk [Line Items]
Concentration risk percentage	3%	3%
Freddie Mac SLST | Washington
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Freddie Mac SLST | Colorado
Concentration Risk [Line Items]
Concentration risk percentage	1%	1%
Freddie Mac SLST | Florida
Concentration Risk [Line Items]
Concentration risk percentage	10%	10%
Freddie Mac SLST | New York
Concentration Risk [Line Items]
Concentration risk percentage	11%	10%
Freddie Mac SLST | Arizona
Concentration Risk [Line Items]
Concentration risk percentage		2%
Freddie Mac SLST | New Jersey
Concentration Risk [Line Items]
Concentration risk percentage	7%	7%
Freddie Mac SLST | Illinois
Concentration Risk [Line Items]
Concentration risk percentage	5%	5%
Freddie Mac SLST | Maryland
Concentration Risk [Line Items]
Concentration risk percentage	5%	5%
Freddie Mac SLST | Ohio
Concentration Risk [Line Items]
Concentration risk percentage	2%	2%
Freddie Mac SLST | Other states (none greater than 5%)
Concentration Risk [Line Items]
Concentration risk percentage	40%	39%

Residential Loans - Loan Produc

Residential Loans - Loan Product Type and Accompanying Loan Characteristics of Residential Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) tranche	Dec. 31, 2021 USD ($) tranche loan
Residential loans, held-for-sale, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | tranche			994	2,196
Total Principal	$ 822,063	$ 822,063	$ 822,063	$ 1,813,865
30-89 Days DQ	5,282	5,282	5,282	0
90+ Days DQ	$ 208	208	$ 208	$ 2,923
Residential loans, held-for-sale, at fair value | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans	8		8	57
Total Principal	$ 4,403	4,403	$ 4,403	$ 51,393
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.63%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.50%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	1			1
Total Principal	$ 41	41	41	$ 45
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6%		1.88%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6%		1.88%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum				$ 251
Loan Balance, maximum				$ 500
Number of Loans | loan				4
Total Principal				$ 1,880
30-89 Days DQ				0
90+ Days DQ				$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				3.25%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				3.50%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	6			18
Total Principal	$ 3,590	3,590	3,590	$ 11,872
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.63%		2.38%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.50%		3.63%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	$ 751	751	$ 751
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	1			14
Total Principal	$ 772	772	772	$ 12,288
30-89 Days DQ	0	0	0	0
90+ Days DQ	$ 0	$ 0	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.25%		2.50%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.25%		4%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum				$ 1,000
Number of Loans | loan				20
Total Principal				$ 25,308
30-89 Days DQ				0
90+ Days DQ				$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				2.38%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				3.88%
Residential loans, held-for-sale, at fair value | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans	986		986	2,139
Total Principal	$ 817,660	$ 817,660	$ 817,660	$ 1,762,472
30-89 Days DQ	5,282	5,282	5,282	0
90+ Days DQ	208	$ 208	208	2,923
Residential loans, held-for-sale, at fair value | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.75%
Residential loans, held-for-sale, at fair value | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		9.25%
Residential loans, held-for-sale, at fair value | Fixed loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	25			63
Total Principal	$ 4,088	4,088	4,088	$ 11,118
30-89 Days DQ	0	0	0	0
90+ Days DQ	208	$ 208	208	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.13%		3.13%
Residential loans, held-for-sale, at fair value | Fixed loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.63%		5%
Residential loans, held-for-sale, at fair value | Fixed loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	138			133
Total Principal	$ 57,202	57,202	57,202	$ 51,737
30-89 Days DQ	444	444	444	0
90+ Days DQ	0	$ 0	0	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.38%		2.75%
Residential loans, held-for-sale, at fair value | Fixed loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		8.25%		5.50%
Residential loans, held-for-sale, at fair value | Fixed loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	283			790
Total Principal	$ 186,202	186,202	186,202	$ 514,785
30-89 Days DQ	537	537	537	0
90+ Days DQ	0	$ 0	0	$ 1,093
Residential loans, held-for-sale, at fair value | Fixed loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.88%		2.50%
Residential loans, held-for-sale, at fair value | Fixed loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		8.25%		5.88%
Residential loans, held-for-sale, at fair value | Fixed loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	$ 751	751	$ 751
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	286			735
Total Principal	$ 248,246	248,246	248,246	$ 642,372
30-89 Days DQ	1,726	1,726	1,726	0
90+ Days DQ	0	$ 0	0	$ 0
Residential loans, held-for-sale, at fair value | Fixed loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.75%		2.63%
Residential loans, held-for-sale, at fair value | Fixed loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		9.25%		5.63%
Residential loans, held-for-sale, at fair value | Fixed loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan	254			418
Total Principal	$ 321,922	321,922	321,922	$ 542,460
30-89 Days DQ	2,575	2,575	2,575	0
90+ Days DQ	0	$ 0	0	$ 1,830
Residential loans, held-for-sale, at fair value | Fixed loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.88%		2.50%
Residential loans, held-for-sale, at fair value | Fixed loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		9.13%		4.75%
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
90+ Days DQ	$ 224,020	$ 224,020	224,020
Legacy Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,304			1,583
Total Principal	$ 204,404	204,404	204,404	$ 264,056
30-89 Days DQ	7,001	7,001	7,001	9,561
90+ Days DQ	$ 6,824	6,824	6,824	$ 7,482
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7			9
Total Principal	$ 2,031	2,031	2,031	$ 3,649
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.88%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	3			3
Total Principal	$ 610	610	610	$ 650
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.63%		2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.63%		2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	4			4
Total Principal	$ 1,421	1,421	1,421	$ 1,341
30-89 Days DQ	0	0	0	0
90+ Days DQ	$ 0	$ 0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.88%		2.50%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.63%		2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum				$ 501
Loan Balance, maximum				$ 750
Number of Loans | loan				1
Total Principal				$ 518
30-89 Days DQ				0
90+ Days DQ				$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				2.50%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				2.50%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum				$ 1,000
Number of Loans | loan				1
Total Principal				$ 1,140
30-89 Days DQ				0
90+ Days DQ				$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				2.63%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				2.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,297			1,574
Total Principal	$ 202,373	$ 202,373	202,373	$ 260,407
30-89 Days DQ	7,001	7,001	7,001	9,561
90+ Days DQ	6,824	$ 6,824	6,824	7,482
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.13%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	1,070			1,273
Total Principal	$ 93,286	93,286	93,286	$ 115,437
30-89 Days DQ	3,792	3,792	3,792	3,189
90+ Days DQ	2,607	$ 2,607	2,607	$ 2,691
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.25%		0.38%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.13%		5.63%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	158			206
Total Principal	$ 54,904	54,904	54,904	$ 71,306
30-89 Days DQ	1,232	1,232	1,232	2,831
90+ Days DQ	1,649	$ 1,649	1,649	$ 2,124
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.25%		0.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.13%		3.88%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	47			68
Total Principal	$ 28,796	28,796	28,796	$ 42,128
30-89 Days DQ	0	0	0	555
90+ Days DQ	1,796	$ 1,796	1,796	$ 1,842
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.63%		0.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.38%		4.13%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	$ 751	751	$ 751
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	13			15
Total Principal	$ 11,047	11,047	11,047	$ 12,868
30-89 Days DQ	929	929	929	1,811
90+ Days DQ	772	$ 772	772	$ 825
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.63%		0.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6%		3.75%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	9			12
Total Principal	$ 14,340	14,340	14,340	$ 18,668
30-89 Days DQ	1,048	1,048	1,048	1,175
90+ Days DQ	$ 0	$ 0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.63%		0.88%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.63%		2%
Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4,624			4,300
Total Principal	$ 3,847,091	$ 3,847,091	3,847,091	$ 3,605,471
30-89 Days DQ	15,522	15,522	15,522	31,460
90+ Days DQ	$ 7,799	7,799	7,799	$ 15,124
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	17			28
Total Principal	$ 13,295	13,295	13,295	$ 22,665
30-89 Days DQ	0	0	0	191
90+ Days DQ	637	$ 637	637	0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.38%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.63%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum				0
Loan Balance, maximum				$ 250
Number of Loans | loan				2
Total Principal				$ 397
30-89 Days DQ				191
90+ Days DQ				$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				5.50%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate				6.75%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	2			3
Total Principal	$ 798	798	798	$ 1,354
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.50%		3.25%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.63%		3.63%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	8			8
Total Principal	$ 5,370	5,370	5,370	$ 5,321
30-89 Days DQ	0	0	0	0
90+ Days DQ	637	$ 637	637	$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.38%		3.38%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.38%		4.50%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	$ 751	751	$ 751
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	4			8
Total Principal	$ 3,294	3,294	3,294	$ 6,659
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4%		3.13%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.63%		5%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan	3			7
Total Principal	$ 3,833	3,833	3,833	$ 8,934
30-89 Days DQ	0	0	0	0
90+ Days DQ	$ 0	$ 0	0	$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4%		3.50%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5%		5%
Sequoia | Residential loans, held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4,607			4,272
Total Principal	$ 3,833,796	$ 3,833,796	3,833,796	$ 3,582,806
30-89 Days DQ	15,522	15,522	15,522	31,269
90+ Days DQ	7,162	$ 7,162	7,162	15,124
Sequoia | Residential loans, held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.88%
Sequoia | Residential loans, held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.75%
Sequoia | Residential loans, held-for-investment | Fixed loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	52			43
Total Principal	$ 9,145	9,145	9,145	$ 8,630
30-89 Days DQ	0	0	0	0
90+ Days DQ	0	$ 0	0	$ 0
Sequoia | Residential loans, held-for-investment | Fixed loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.63%		2.75%
Sequoia | Residential loans, held-for-investment | Fixed loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.25%		5.13%
Sequoia | Residential loans, held-for-investment | Fixed loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	146			162
Total Principal	$ 61,208	61,208	61,208	$ 69,442
30-89 Days DQ	2,348	2,348	2,348	2,390
90+ Days DQ	877	$ 877	877	$ 462
Sequoia | Residential loans, held-for-investment | Fixed loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.38%		2.50%
Sequoia | Residential loans, held-for-investment | Fixed loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.75%		6.13%
Sequoia | Residential loans, held-for-investment | Fixed loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	1,884			1,691
Total Principal	$ 1,211,531	1,211,531	1,211,531	$ 1,093,766
30-89 Days DQ	7,064	7,064	7,064	10,894
90+ Days DQ	1,840	$ 1,840	1,840	$ 3,498
Sequoia | Residential loans, held-for-investment | Fixed loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.13%		2.13%
Sequoia | Residential loans, held-for-investment | Fixed loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.38%		6.75%
Sequoia | Residential loans, held-for-investment | Fixed loans | $751 to $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	751	$ 751	751	$ 751
Loan Balance, maximum	$ 1,000	1,000	1,000	$ 1,000
Number of Loans | loan	1,600			1,497
Total Principal	$ 1,396,210	1,396,210	1,396,210	$ 1,311,640
30-89 Days DQ	2,425	2,425	2,425	9,477
90+ Days DQ	1,849	$ 1,849	1,849	$ 4,931
Sequoia | Residential loans, held-for-investment | Fixed loans | $751 to $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.13%		2.13%
Sequoia | Residential loans, held-for-investment | Fixed loans | $751 to $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6%		6.25%
Sequoia | Residential loans, held-for-investment | Fixed loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan	925			879
Total Principal	$ 1,155,702	1,155,702	1,155,702	$ 1,099,328
30-89 Days DQ	3,685	3,685	3,685	8,508
90+ Days DQ	$ 2,596	$ 2,596	2,596	$ 6,233
Sequoia | Residential loans, held-for-investment | Fixed loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.88%		1.88%
Sequoia | Residential loans, held-for-investment | Fixed loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.88%		5.88%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	10,882			11,986
Total Principal	$ 1,719,236	$ 1,719,236	1,719,236	$ 1,932,241
30-89 Days DQ	302,095	302,095	302,095	341,046
90+ Days DQ	209,397	$ 209,397	209,397	212,961
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $0 to $250
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	0	$ 0	0	0
Loan Balance, maximum	$ 250	250	250	$ 250
Number of Loans | loan	8,979			9,798
Total Principal	$ 1,105,116	1,105,116	1,105,116	$ 1,224,173
30-89 Days DQ	197,718	197,718	197,718	222,541
90+ Days DQ	120,210	$ 120,210	120,210	$ 114,622
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $0 to $250 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2%		2%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $0 to $250 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11%		11%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $251 to $500
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	251	$ 251	251	$ 251
Loan Balance, maximum	$ 500	500	500	$ 500
Number of Loans | loan	1,867			2,141
Total Principal	$ 593,781	593,781	593,781	$ 681,885
30-89 Days DQ	103,339	103,339	103,339	114,360
90+ Days DQ	80,993	$ 80,993	80,993	$ 91,149
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $251 to $500 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2%		2%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $251 to $500 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		7.75%		7.75%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $501 to $750
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, minimum	501	$ 501	501	$ 501
Loan Balance, maximum	$ 750	750	750	$ 750
Number of Loans | loan	35			46
Total Principal	$ 19,328	19,328	19,328	$ 25,165
30-89 Days DQ	1,038	1,038	1,038	3,127
90+ Days DQ	7,184	$ 7,184	7,184	$ 7,190
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $501 to $750 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2%		2%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | $501 to $750 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.50%		5.88%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Over $1,000
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000	1,000	$ 1,000
Number of Loans | loan	1			1
Total Principal	$ 1,010	1,010	1,010	$ 1,018
30-89 Days DQ	0	0	0	1,018
90+ Days DQ	$ 1,010	$ 1,010	$ 1,010	$ 0
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Over $1,000 | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4%		4%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Over $1,000 | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4%		4%

Business Purpose Loans - Classi

Business Purpose Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 364,073	$ 358,309
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,968,513	4,432,680
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	5,332,586	4,790,989
Redwood | Held-for-sale at fair value, Total | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	358,791	358,309
Redwood | Held-for-sale at fair value, Total | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	5,282	0
Redwood | Held-for-investment at fair value, Total | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
Redwood | Held-for-investment at fair value, Total | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,507,146	666,364
Redwood | Business Purpose Loans | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	358,791	358,309
Redwood | Business Purpose Loans | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,512,428	666,364
CAFL | Held-for-sale at fair value, Total | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CAFL | Held-for-sale at fair value, Total | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CAFL | Held-for-investment at fair value, Total | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	2,944,984	3,488,074
CAFL | Held-for-investment at fair value, Total | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	516,383	278,242
CAFL | Business Purpose Loans | BPL Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	2,944,984	3,488,074
CAFL | Business Purpose Loans | BPL Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 516,383	$ 278,242

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans originated	$ 3,841,952	$ 13,188,434	$ 4,431,468
Principal payments on real estate securities	32,735	60,667	27,210
Transfers from loans held-for-sale to loans held-for-investment	2,949,262	5,026,723	1,868,656
Transfers from loans held-for-investment to loans held-for-sale	0	92,400	$ 64,520
Redwood | Riverbend Acquisition
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 60,000
Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	91
Unpaid principal balance	$ 389,846
Single-family rental loans, held-for-sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans originated	1,000,109	1,254,913
Principal balance of loans acquired	100,349	68,804
Principal payments on real estate securities	429,873	193,963
Transfers from loans held-for-sale to loans held-for-investment	561,218	1,116,443
Transfers from loans held-for-investment to loans held-for-sale	0	92,455
Gain (loss) on investments	0	0
Single-family rental loans, held-for-sale | Redwood | Business Purpose Mortgage Banking Activities
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	(91,024)	63,206
Business purpose loans held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans originated	1,698,227	894,908
Principal balance of loans acquired	97,787	65,315
Principal payments on real estate securities	79,608	9,484
Transfers from loans held-for-sale to loans held-for-investment	584,233	358,884
Transfers from loans held-for-investment to loans held-for-sale	0
Gain (loss) on investments	(5,805)	1,483
Business purpose loans held-for-investment | Redwood | Business Purpose Mortgage Banking Activities
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	$ 1,881	$ 7,188
Business purpose loans held-for-investment | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,875	1,640
Unpaid principal balance	$ 514,666	$ 274,617
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income	41,000
Fair value of loans	5,332,586	4,790,989
Business Purpose Loans Term Loans | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	(441,318)	(158,081)
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	$ (435)	$ (1,548)
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]
Number of Loans | loan	1,131	1,173
Unpaid principal balance	$ 3,263,421	$ 3,340,949
Fair value of loans	$ 2,944,984	$ 3,488,074
Weighted average coupon rate (as a percent)	5.22%	5.17%
Weighted average remaining loan term (years)	6 years	6 years
Loans, at fair value	$ 13,686	$ 12,648
Number of loans in foreclosure | loan	9	9
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	16	18
Loans, at fair value	$ 37,072	$ 41,998
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	91	245
Unpaid principal balance	$ 389,846	$ 348,232
Fair value of loans	$ 358,791	$ 358,309
Weighted average coupon rate (as a percent)	5.98%	4.73%
Weighted average remaining loan term (years)	10 years	12 years
Loans, at fair value	$ 536	$ 5,473
Number of loans in foreclosure | loan	1	7
Loans held as assets amount in foreclosure	$ 536	$ 4,305
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	$ 536	$ 4,238
Number of loans with 90+ day delinquencies | loan	1	6
Loans, at fair value	$ 536	$ 5,384
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	291,406	75,873
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	$ 66,567	$ 244,703
Business Purpose Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,601	1,134
Unpaid principal balance	$ 1,518,427	$ 670,392
Fair value of loans	$ 1,512,428	$ 666,364
Weighted average coupon rate (as a percent)	9.61%	6.91%
Weighted average remaining loan term (years)	2 years	1 year
Loans, at fair value	$ 34,039	$ 18,043
Number of loans in foreclosure | loan	48	28
Loans held as assets amount in foreclosure	$ 29,438	$ 14,257
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	$ 29,663	$ 14,218
Number of loans with 90+ day delinquencies | loan	49	31
Loans, at fair value	$ 34,264	$ 18,032
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	579,666	91,814
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	$ 897,782	$ 554,597
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	1,875	1,640
Unpaid principal balance	$ 514,666	$ 274,617
Fair value of loans	$ 516,383	$ 278,242
Weighted average coupon rate (as a percent)	9.67%	7.05%
Weighted average remaining loan term (years)	1 year	1 year
Loans, at fair value	$ 7,328	$ 0
Number of loans in foreclosure | loan	48	0
Loans held as assets amount in foreclosure	$ 7,438	$ 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	$ 7,438	$ 0
Number of loans with 90+ day delinquencies | loan	48	0
Loans, at fair value	$ 7,328	$ 0

Business Purpose Loans - Narrat

Business Purpose Loans - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Amount of investments with original maturities of of 30 years (as a percent)	1%
Commitment To Fund Residential Bridge Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other commitment	$ 904
LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Variable rate (as a percent)	37%
SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Variable rate (as a percent)	53%
Fixed Rate
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Variable rate (as a percent)	10%
Minimum | Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Original maturity (in months)	6 months
Maximum | Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Original maturity (in months)	36 months

Business Purpose Loans - Geogra

Business Purpose Loans - Geographic Concentration of Business Purpose Loans (Details) - Geographic Concentration Risk - Loan Benchmark	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business purpose loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100%	100%
Business purpose loans held-for-investment | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	3%
Business purpose loans held-for-investment | Connecticut
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	4%	4%
Business purpose loans held-for-investment | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8%	4%
Business purpose loans held-for-investment | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	2%
Business purpose loans held-for-investment | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6%	10%
Business purpose loans held-for-investment | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	13%	7%
Business purpose loans held-for-investment | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6%	9%
Business purpose loans held-for-investment | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7%	9%
Business purpose loans held-for-investment | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	21%	20%
Business purpose loans held-for-investment | Tennessee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6%	11%
Business purpose loans held-for-investment | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	25%	21%
Single-family rental loans, held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100%	100%
Single-family rental loans, held-for-sale at fair value | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3%	5%
Single-family rental loans, held-for-sale at fair value | Connecticut
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1%	3%
Single-family rental loans, held-for-sale at fair value | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3%	4%
Single-family rental loans, held-for-sale at fair value | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3%	9%
Single-family rental loans, held-for-sale at fair value | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	17%
Single-family rental loans, held-for-sale at fair value | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1%	13%
Single-family rental loans, held-for-sale at fair value | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	33%	3%
Single-family rental loans, held-for-sale at fair value | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6%	12%
Single-family rental loans, held-for-sale at fair value | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	14%	7%
Single-family rental loans, held-for-sale at fair value | Tennessee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	2%
Single-family rental loans, held-for-sale at fair value | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	29%	25%
Redwood | Single family rental loans held for investment at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100%	100%
Redwood | Single family rental loans held for investment at fair value | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	34%	5%
Redwood | Single family rental loans held for investment at fair value | Connecticut
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	10%	9%
Redwood | Single family rental loans held for investment at fair value | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	6%	2%
Redwood | Single family rental loans held for investment at fair value | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	2%
Redwood | Single family rental loans held for investment at fair value | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	4%	15%
Redwood | Single family rental loans held for investment at fair value | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3%	11%
Redwood | Single family rental loans held for investment at fair value | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	11%
Redwood | Single family rental loans held for investment at fair value | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	7%
Redwood | Single family rental loans held for investment at fair value | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	5%
Redwood | Single family rental loans held for investment at fair value | Tennessee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	1%	0%
Redwood | Single family rental loans held for investment at fair value | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	31%	33%
CAFL | Single family rental loans held for investment at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100%	100%
CAFL | Single family rental loans held for investment at fair value | California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	4%	5%
CAFL | Single family rental loans held for investment at fair value | Connecticut
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8%	6%
CAFL | Single family rental loans held for investment at fair value | Illinois
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	5%
CAFL | Single family rental loans held for investment at fair value | New York
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	2%
CAFL | Single family rental loans held for investment at fair value | Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7%	7%
CAFL | Single family rental loans held for investment at fair value | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	16%	15%
CAFL | Single family rental loans held for investment at fair value | Alabama
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	3%	3%
CAFL | Single family rental loans held for investment at fair value | New Jersey
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	8%	8%
CAFL | Single family rental loans held for investment at fair value | Georgia
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	5%
CAFL | Single family rental loans held for investment at fair value | Tennessee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	2%	3%
CAFL | Single family rental loans held for investment at fair value | Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	37%	41%

Business Purpose Loans - Produc

Business Purpose Loans - Product Types and Characteristics of Business Purpose Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Single-family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	91
Total Principal	$ 389,846
30-89 Days DQ	550
90+ Days DQ	536
Single-family rental loans | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0
Loan Balance, maximum	$ 250
Number of Loans | loan	13
Total Principal	$ 1,682
30-89 Days DQ	0
90+ Days DQ	$ 0
Single-family rental loans | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.25%
Single-family rental loans | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.88%
Single-family rental loans | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 251
Loan Balance, maximum	$ 500
Number of Loans | loan	14
Total Principal	$ 5,014
30-89 Days DQ	0
90+ Days DQ	$ 0
Single-family rental loans | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	5%
Single-family rental loans | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.74%
Single-family rental loans | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501
Loan Balance, maximum	$ 750
Number of Loans | loan	11
Total Principal	$ 6,658
30-89 Days DQ	550
90+ Days DQ	$ 536
Single-family rental loans | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.65%
Single-family rental loans | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.44%
Single-family rental loans | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751
Loan Balance, maximum	$ 1,000
Number of Loans | loan	4
Total Principal	$ 3,724
30-89 Days DQ	0
90+ Days DQ	$ 0
Single-family rental loans | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.25%
Single-family rental loans | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.08%
Single-family rental loans | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000
Number of Loans | loan	49
Total Principal	$ 372,768
30-89 Days DQ	0
90+ Days DQ	$ 0
Single-family rental loans | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.75%
Single-family rental loans | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.47%
CAFL | Single family rental loans held for investment at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,131	1,173
Total Principal	$ 3,263,421	$ 3,340,949
30-89 Days DQ	72,574
90+ Days DQ	39,483
CAFL | Single family rental loans held for investment at fair value | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan		1,173
Total Principal		$ 3,340,949
30-89 Days DQ		28,472
90+ Days DQ		41,999
CAFL | Single family rental loans held for investment at fair value | $0 to $250
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0
Loan Balance, maximum	$ 250
Number of Loans | loan	5
Total Principal	$ 588
30-89 Days DQ	0
90+ Days DQ	$ 0
CAFL | Single family rental loans held for investment at fair value | $0 to $250 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		0
Loan Balance, maximum		$ 250
Number of Loans | loan		5
Total Principal		$ 398
30-89 Days DQ		20
90+ Days DQ		$ 0
CAFL | Single family rental loans held for investment at fair value | $0 to $250 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.54%
CAFL | Single family rental loans held for investment at fair value | $0 to $250 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		5.77%
CAFL | Single family rental loans held for investment at fair value | $0 to $250 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.27%
CAFL | Single family rental loans held for investment at fair value | $0 to $250 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		6.80%
CAFL | Single family rental loans held for investment at fair value | $251 to $500
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 251
Loan Balance, maximum	$ 500
Number of Loans | loan	73
Total Principal	$ 31,725
30-89 Days DQ	0
90+ Days DQ	$ 711
CAFL | Single family rental loans held for investment at fair value | $251 to $500 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 251
Loan Balance, maximum		$ 500
Number of Loans | loan		73
Total Principal		$ 32,106
30-89 Days DQ		466
90+ Days DQ		$ 257
CAFL | Single family rental loans held for investment at fair value | $251 to $500 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4%
CAFL | Single family rental loans held for investment at fair value | $251 to $500 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		4.64%
CAFL | Single family rental loans held for investment at fair value | $251 to $500 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.06%
CAFL | Single family rental loans held for investment at fair value | $251 to $500 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.03%
CAFL | Single family rental loans held for investment at fair value | $501 to $750
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501
Loan Balance, maximum	$ 750
Number of Loans | loan	181
Total Principal	$ 112,413
30-89 Days DQ	2,025
90+ Days DQ	$ 1,200
CAFL | Single family rental loans held for investment at fair value | $501 to $750 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 501
Loan Balance, maximum		$ 750
Number of Loans | loan		199
Total Principal		$ 123,685
30-89 Days DQ		717
90+ Days DQ		$ 1,224
CAFL | Single family rental loans held for investment at fair value | $501 to $750 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.12%
CAFL | Single family rental loans held for investment at fair value | $501 to $750 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		4%
CAFL | Single family rental loans held for investment at fair value | $501 to $750 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.04%
CAFL | Single family rental loans held for investment at fair value | $501 to $750 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.06%
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751
Loan Balance, maximum	$ 1,000
Number of Loans | loan	123
Total Principal	$ 107,097
30-89 Days DQ	0
90+ Days DQ	$ 1,856
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 751
Loan Balance, maximum		$ 1,000
Number of Loans | loan		134
Total Principal		$ 116,724
30-89 Days DQ		788
90+ Days DQ		$ 0
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.20%
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		4.20%
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.23%
CAFL | Single family rental loans held for investment at fair value | $751 to $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.23%
CAFL | Single family rental loans held for investment at fair value | Over $1,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000
Number of Loans | loan	749
Total Principal	$ 3,011,598
30-89 Days DQ	70,549
90+ Days DQ	$ 35,716
CAFL | Single family rental loans held for investment at fair value | Over $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum		$ 1,000
Number of Loans | loan		762
Total Principal		$ 3,068,036
30-89 Days DQ		26,481
90+ Days DQ		$ 40,518
CAFL | Single family rental loans held for investment at fair value | Over $1,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	3.81%
CAFL | Single family rental loans held for investment at fair value | Over $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		3.81%
CAFL | Single family rental loans held for investment at fair value | Over $1,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	7.57%
CAFL | Single family rental loans held for investment at fair value | Over $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.57%
CAFL | Business purpose loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,875	1,640
Total Principal	$ 514,666	$ 274,617
30-89 Days DQ	5,688	3,426
90+ Days DQ	$ 7,328	$ 0
CAFL | Business purpose loans held-for-investment | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	605	920
Total Principal	$ 109,803	$ 135,878
30-89 Days DQ	1,700	0
90+ Days DQ	$ 3,953	$ 0
CAFL | Business purpose loans held-for-investment | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,270	720
Total Principal	$ 404,863	$ 138,739
30-89 Days DQ	3,988	3,426
90+ Days DQ	3,375	0
CAFL | Business purpose loans held-for-investment | $0 to $250 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Number of Loans | loan	513	808
Total Principal	$ 44,865	$ 58,110
30-89 Days DQ	0	0
90+ Days DQ	193	0
CAFL | Business purpose loans held-for-investment | $0 to $250 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Number of Loans | loan	1,064	681
Total Principal	$ 131,492	$ 77,001
30-89 Days DQ	0	2,091
90+ Days DQ	$ 2,040	$ 0
CAFL | Business purpose loans held-for-investment | $0 to $250 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.30%	5.45%
CAFL | Business purpose loans held-for-investment | $0 to $250 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.12%	5.85%
CAFL | Business purpose loans held-for-investment | $0 to $250 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.24%	10.65%
CAFL | Business purpose loans held-for-investment | $0 to $250 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	12.62%	10.50%
CAFL | Business purpose loans held-for-investment | $251 to $500 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 251	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	55	70
Total Principal	$ 17,677	$ 23,488
30-89 Days DQ	300	0
90+ Days DQ	0	0
CAFL | Business purpose loans held-for-investment | $251 to $500 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	112	13
Total Principal	$ 32,706	$ 4,088
30-89 Days DQ	0	783
90+ Days DQ	$ 783	$ 0
CAFL | Business purpose loans held-for-investment | $251 to $500 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.30%	5.95%
CAFL | Business purpose loans held-for-investment | $251 to $500 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.12%	5.95%
CAFL | Business purpose loans held-for-investment | $251 to $500 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.99%	10.50%
CAFL | Business purpose loans held-for-investment | $251 to $500 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.37%	8.35%
CAFL | Business purpose loans held-for-investment | $501 to $750 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	15	24
Total Principal	$ 8,969	$ 15,041
30-89 Days DQ	0	0
90+ Days DQ	0	0
CAFL | Business purpose loans held-for-investment | $501 to $750 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	19	5
Total Principal	$ 11,595	$ 3,097
30-89 Days DQ	0	552
90+ Days DQ	$ 552	$ 0
CAFL | Business purpose loans held-for-investment | $501 to $750 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.30%	5.95%
CAFL | Business purpose loans held-for-investment | $501 to $750 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.92%	5.75%
CAFL | Business purpose loans held-for-investment | $501 to $750 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.49%	9.99%
CAFL | Business purpose loans held-for-investment | $501 to $750 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.82%	8.50%
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	7	7
Total Principal	$ 6,152	$ 6,375
30-89 Days DQ	0	0
90+ Days DQ	0	0
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	9	3
Total Principal	$ 7,570	$ 2,546
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.50%	5.45%
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.87%	6.75%
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.50%	8.99%
CAFL | Business purpose loans held-for-investment | $751 to $1,000 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.37%	7.25%
CAFL | Business purpose loans held-for-investment | Over $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	15	11
Total Principal	$ 32,140	$ 32,864
30-89 Days DQ	1,400	0
90+ Days DQ	3,760	0
CAFL | Business purpose loans held-for-investment | Over $1,000 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	66	18
Total Principal	$ 221,500	$ 52,007
30-89 Days DQ	3,988	0
90+ Days DQ	$ 0	$ 0
CAFL | Business purpose loans held-for-investment | Over $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.75%	6.25%
CAFL | Business purpose loans held-for-investment | Over $1,000 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.77%	5.75%
CAFL | Business purpose loans held-for-investment | Over $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.99%	9%
CAFL | Business purpose loans held-for-investment | Over $1,000 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	12.37%	10%
Redwood | Single-family rental loans | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan		245
Total Principal		$ 348,232
30-89 Days DQ		89
90+ Days DQ		5,384
Redwood | Single-family rental loans | $0 to $250 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		0
Loan Balance, maximum		$ 250
Number of Loans | loan		74
Total Principal		$ 11,515
30-89 Days DQ		89
90+ Days DQ		$ 171
Redwood | Single-family rental loans | $0 to $250 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		3.75%
Redwood | Single-family rental loans | $0 to $250 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.75%
Redwood | Single-family rental loans | $251 to $500 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 251
Loan Balance, maximum		$ 500
Number of Loans | loan		57
Total Principal		$ 21,284
30-89 Days DQ		0
90+ Days DQ		$ 0
Redwood | Single-family rental loans | $251 to $500 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		3.75%
Redwood | Single-family rental loans | $251 to $500 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		6.50%
Redwood | Single-family rental loans | $501 to $750 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 501
Loan Balance, maximum		$ 750
Number of Loans | loan		28
Total Principal		$ 16,773
30-89 Days DQ		0
90+ Days DQ		$ 536
Redwood | Single-family rental loans | $501 to $750 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		3.75%
Redwood | Single-family rental loans | $501 to $750 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		6.70%
Redwood | Single-family rental loans | $751 to $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum		$ 751
Loan Balance, maximum		$ 1,000
Number of Loans | loan		12
Total Principal		$ 9,764
30-89 Days DQ		0
90+ Days DQ		$ 0
Redwood | Single-family rental loans | $751 to $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		4.13%
Redwood | Single-family rental loans | $751 to $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		5.43%
Redwood | Single-family rental loans | Over $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum		$ 1,000
Number of Loans | loan		74
Total Principal		$ 288,896
30-89 Days DQ		0
90+ Days DQ		$ 4,677
Redwood | Single-family rental loans | Over $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		3.38%
Redwood | Single-family rental loans | Over $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate		7.15%
Redwood | BPL bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,601	1,134
Total Principal	$ 1,518,427	$ 670,392
30-89 Days DQ	1,240	17,393
90+ Days DQ	$ 34,264	$ 18,032
Redwood | BPL bridge loans | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	261	187
Total Principal	$ 105,178	$ 96,066
30-89 Days DQ	1,240	13,995
90+ Days DQ	$ 33,392	$ 17,116
Redwood | BPL bridge loans | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	1,340	947
Total Principal	$ 1,413,249	$ 574,326
30-89 Days DQ	0	3,398
90+ Days DQ	872	916
Redwood | BPL bridge loans | $0 to $250 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Number of Loans | loan	155	115
Total Principal	$ 15,409	$ 12,850
30-89 Days DQ	1,240	426
90+ Days DQ	957	1,493
Redwood | BPL bridge loans | $0 to $250 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	0	0
Loan Balance, maximum	$ 250	$ 250
Number of Loans | loan	1,086	737
Total Principal	$ 114,604	$ 65,611
30-89 Days DQ	0	773
90+ Days DQ	$ 872	$ 0
Redwood | BPL bridge loans | $0 to $250 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.25%	5.95%
Redwood | BPL bridge loans | $0 to $250 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.37%	4.25%
Redwood | BPL bridge loans | $0 to $250 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.25%	12%
Redwood | BPL bridge loans | $0 to $250 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.37%	10%
Redwood | BPL bridge loans | $251 to $500 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 251	$ 251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	54	26
Total Principal	$ 19,745	$ 9,294
30-89 Days DQ	0	253
90+ Days DQ	1,290	1,619
Redwood | BPL bridge loans | $251 to $500 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	251	251
Loan Balance, maximum	$ 500	$ 500
Number of Loans | loan	116	123
Total Principal	$ 45,290	$ 42,248
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Redwood | BPL bridge loans | $251 to $500 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6%	5.95%
Redwood | BPL bridge loans | $251 to $500 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.37%	4.25%
Redwood | BPL bridge loans | $251 to $500 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.50%	10%
Redwood | BPL bridge loans | $251 to $500 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.61%	8.25%
Redwood | BPL bridge loans | $501 to $750 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 501	$ 501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	20	13
Total Principal	$ 12,108	$ 8,498
30-89 Days DQ	0	637
90+ Days DQ	2,568	2,012
Redwood | BPL bridge loans | $501 to $750 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	501	501
Loan Balance, maximum	$ 750	$ 750
Number of Loans | loan	8	9
Total Principal	$ 4,699	$ 5,724
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
Redwood | BPL bridge loans | $501 to $750 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.50%	6.70%
Redwood | BPL bridge loans | $501 to $750 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.37%	5.75%
Redwood | BPL bridge loans | $501 to $750 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11%	10%
Redwood | BPL bridge loans | $501 to $750 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.61%	8.60%
Redwood | BPL bridge loans | $751 to $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 751	$ 751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	7	9
Total Principal	$ 6,375	$ 7,544
30-89 Days DQ	0	980
90+ Days DQ	980	0
Redwood | BPL bridge loans | $751 to $1,000 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	751	751
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	3	12
Total Principal	$ 2,754	$ 10,200
30-89 Days DQ	0	945
90+ Days DQ	$ 0	$ 916
Redwood | BPL bridge loans | $751 to $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.95%	5.45%
Redwood | BPL bridge loans | $751 to $1,000 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	9.37%	5.75%
Redwood | BPL bridge loans | $751 to $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10%	10%
Redwood | BPL bridge loans | $751 to $1,000 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10.12%	7.50%
Redwood | BPL bridge loans | Over $1,000 | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	25	24
Total Principal	$ 51,541	$ 57,880
30-89 Days DQ	0	11,699
90+ Days DQ	27,597	11,992
Redwood | BPL bridge loans | Over $1,000 | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, maximum	$ 1,000	$ 1,000
Number of Loans | loan	127	66
Total Principal	$ 1,245,902	$ 450,543
30-89 Days DQ	0	1,680
90+ Days DQ	$ 0	$ 0
Redwood | BPL bridge loans | Over $1,000 | Minimum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	6.95%	5.45%
Redwood | BPL bridge loans | Over $1,000 | Minimum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	8.27%	4.90%
Redwood | BPL bridge loans | Over $1,000 | Maximum | Fixed loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	10%	10%
Redwood | BPL bridge loans | Over $1,000 | Maximum | Floating Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	11.87%	9.50%

Consolidated Agency Multifami_3

Consolidated Agency Multifamily Loans - Characteristics and Activity of Multifamily Loans (Details) - Multifamily securities $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	28	28
Unpaid principal balance | $	$ 447,193	$ 455,168
Residential loans, 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 gains (losses) recorded | $	$ (40,987)	$ (11,068)
Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	28	28
Unpaid principal balance | $	$ 447,193	$ 455,168
Fair value of loans | $	$ 424,551	$ 473,514
Weighted average coupon rate (as a percent)	4.25%	4.25%
Weighted average remaining loan term (years)	3 years	4 years
Number of loans in foreclosure | loan	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

Consolidated Agency Multifami_4

Consolidated Agency Multifamily Loans - Geographic Concentration of Multifamily Loans (Details) - Multifamily securities - Geographic Concentration Risk - Loan Benchmark	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	100%	100%
California
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	13%	13%
Florida
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	13%	13%
North Carolina
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	9%	9%
Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	7%	7%
Hawaii
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	5%
Tennessee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	5%	5%
Other states (none greater than 5%)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	48%	48%

Consolidated Agency Multifami_5

Consolidated Agency Multifamily Loans - Product Types and Characteristics of Multifamily Loans (Details) - Multifamily securities $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan	28	28
Total Principal	$ 447,193	$ 455,168
30-89 Days DQ	0	0
90+ Days DQ	0	$ 0
$10,001 to $20,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	10,001
Loan Balance, maximum	$ 20,000
Number of Loans | loan	24	24
Total Principal	$ 358,419	$ 364,811
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
$10,001 to $20,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.25%	4.25%
$10,001 to $20,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.25%	4.25%
$20,001 to $30,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan Balance, minimum	$ 20,001
Loan Balance, maximum	$ 30,000
Number of Loans | loan	4	4
Total Principal	$ 88,774	$ 90,357
30-89 Days DQ	0	0
90+ Days DQ	$ 0	$ 0
$20,001 to $30,000 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.25%	4.25%
$20,001 to $30,000 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest Rate	4.25%	4.25%

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities by Collateral Type and Entity (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Trading		$ 108,329	$ 170,619
Available-for-sale		132,146	206,792
Total Real Estate Securities	[1]	$ 240,475	$ 377,411
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 108,329	$ 170,619
Unpaid principal balance	215,592	235,306
Principal balance of securities acquired	0	50,180
Principal balance of securities sold	17,716	55,561
Net market valuation gains (losses) recorded	(34,221)	23,583
Securities bought and sold during the same quarter		5,000
Senior IO Securities
Investment Holdings [Line Items]
Real estate securities, at fair value	28,867	21,787
Unpaid principal balance	0	0
Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	79,462	148,832
Unpaid principal balance	215,592	235,306
Interest-only securities | Senior IO Securities
Investment Holdings [Line Items]
Real estate securities, at fair value	28,867	21,787
Interest-only securities | Senior IO Securities | Sequoia
Investment Holdings [Line Items]
Real estate securities, at fair value	26,000	15,000
RPL securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	29,002	65,140
Multifamily securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	5,027	10,549
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 45,433	$ 73,143

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment Holdings [Line Items]
Debt securities, available for sale	$ 132,146	$ 206,792
Fair value of securities acquired	10,000	19,100
Fair value of securities sold	0	4,785
Principal balance of securities called	20,267	27,875
Net unrealized (loss) gain on available-for-sale securities	(64,704)	8,016	$ (3,951)
Sequoia securities
Investment Holdings [Line Items]
Debt securities, available for sale	74,367	127,542
Multifamily securities
Investment Holdings [Line Items]
Debt securities, available for sale	7,647	22,166
Other third-party residential securities
Investment Holdings [Line Items]
Debt securities, available for sale	50,132	57,084
Total Subordinate
Investment Holdings [Line Items]
Debt securities, available for sale	$ 132,146	$ 206,792

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	Dec. 31, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment	Dec. 31, 2020 USD ($)
Investment Holdings [Line Items]
Number of AFS securities | investment	79	85
Number of securities in unrealized loss position | investment	38	4
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer | investment	1	1
Gross unrealized losses	$ 13,127	$ 297
CECL credit allowance	2,540	$ 0	$ 388
Residential
Investment Holdings [Line Items]
Marketable securities, less than five years	4,000
Marketable securities, due from five to ten years	$ 1,000

Real Estate Securities - Carryi

Real Estate Securities - Carrying Value of AFS Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Principal balance	$ 221,933	$ 242,852
Credit reserve	(28,739)	(27,555)
Unamortized discount, net	(61,650)	(76,023)
Amortized cost	131,544	139,274
Gross unrealized gains	16,269	67,815
Gross unrealized losses	(13,127)	(297)
CECL allowance	(2,540)	0	$ (388)
Carrying Value	$ 132,146	$ 206,792

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Credit Reserve
Beginning balance	$ 27,555
Ending Balance	28,739	$ 27,555
Unamortized Discount, Net
Beginning balance	76,023
Ending Balance	61,650	76,023
Residential
Credit Reserve
Beginning balance	27,555	44,967
Amortization of net discount	0	0
Realized credit recoveries (losses), net	471	(707)
Acquisitions	0	2,825
Sales, calls, other	(842)	(1,328)
Transfers to (release of) credit reserves, net	1,555	(18,202)
Ending Balance	28,739	27,555
Unamortized Discount, Net
Beginning balance	76,023	95,718
Amortization of net discount	(11,153)	(23,254)
Realized credit recoveries (losses), net	0	0
Acquisitions	0	1,208
Sales, calls, other	(1,665)	(15,851)
Transfers to (release of) credit reserves, net	(1,555)	18,202
Ending Balance	$ 61,650	$ 76,023

Real Estate Securities - Compon

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months, Fair Value	$ 72,679	$ 6,827
Less Than 12 Consecutive Months, Unrealized Losses	(12,940)	(251)
12 Consecutive Months or Longer, Fair Value	1,414	1,554
12 Consecutive Months or Longer, Accumulated Loss	$ (186)	$ (46)

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss (Details) - Subordinate Securities	12 Months Ended
	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Default rate	0.70%
Loss severity	20%

Real Estate Securities - Activi

Real Estate Securities - Activity of Allowance for Credit Losses for Available-for-sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Beginning balance	$ 0	$ 388
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	1,726	0
Additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period	814	(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	$ 2,540	$ 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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 2,508	$ 17,093	$ 4,640
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	0	1,540	8,779
Gross realized losses - sales	0	0	(4,144)
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 2,508	$ 15,553	$ 5

Home Equity Investments (HEI) -

Home Equity Investments (HEI) - Schedule of Home Equity Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 403,462	$ 192,740
HEI at Redwood | Redwood
Schedule of Equity Method Investments [Line Items]
Home equity investments	270,835	33,187
HEI at Redwood | HEIs held at consolidated HEI securitization entity
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 132,627	$ 159,553

Home Equity Investments (HEI)_2

Home Equity Investments (HEI) - Activity of HEI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	$ 5,875	$ 567
Redwood
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	(202)	13,207
Home Equity Investments Purchased, Fair Value
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	0	0
Home Equity Investments Purchased, Fair Value | Redwood
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	248,218	32,650
Home Equity Investments Transferred, Fair Value
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	0	47,209
Home Equity Investments Transferred, Fair Value | Redwood
Schedule of Equity Method Investments [Line Items]
Net market valuation gains (losses)	$ 0	$ (47,209)

Home Equity Investments (HEI)_3

Home Equity Investments (HEI) - HEI Characteristics (Details) $ in Thousands	Dec. 31, 2022 USD ($) Contract	Dec. 31, 2021 USD ($) Contract
HEI at Redwood
Schedule of Equity Method Investments [Line Items]
Number of HEI contracts | Contract	2,599	333
Average initial amount of contract | $	$ 101	$ 95
Securitized HEI
Schedule of Equity Method Investments [Line Items]
Number of HEI contracts | Contract	1,007	1,318
Average initial amount of contract | $	$ 94	$ 91

Home Equity Investments (HEI)_4

Home Equity Investments (HEI) - Geographic Concentration of HEI (Details) - Geographic Concentration Risk - Investments Benchmark	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
HEI at Redwood
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	100%	100%
HEI at Redwood | California
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	44%	42%
HEI at Redwood | Florida
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	14%	9%
HEI at Redwood | Arizona
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	7%	10%
HEI at Redwood | Washington
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	6%	12%
HEI at Redwood | Colorado
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	5%	3%
HEI at Redwood | New York
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	4%	5%
HEI at Redwood | Other states (none greater than 5%)
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	20%	19%
Securitized HEI
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	100%	100%
Securitized HEI | California
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	59%	58%
Securitized HEI | Florida
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	4%	4%
Securitized HEI | Arizona
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	0%	0%
Securitized HEI | Washington
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	6%	6%
Securitized HEI | Colorado
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	4%	5%
Securitized HEI | New York
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	11%	10%
Securitized HEI | Other states (none greater than 5%)
Schedule of Equity Method Investments [Line Items]
Concentration risk percentage	16%	17%

Home Equity Investments (HEI)_5

Home Equity Investments (HEI) - Additional Information (Details) $ in Millions	Dec. 31, 2022 USD ($)
Commitment To Acquire HEIs
Schedule of Equity Method Investments [Line Items]
Cumulative commitment	$ 69

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Investment [Line Items]
Home equity investments	[1]	$ 403,462	$ 192,740
Total Other Investments	[1]	390,938	449,229
Mortgage servicing rights
Investment [Line Items]
Servicing asset, fair value		25,421	12,438
Other
Investment [Line Items]
Home equity investments		705	5,935
Residential Loans
Investment [Line Items]
Servicing asset, fair value		269,259	350,923
Strategic investments
Investment [Line Items]
Servicing asset, fair value		56,518	35,702
Excess MSRs
Investment [Line Items]
Servicing asset, fair value		$ 39,035	$ 44,231
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) partnership investment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 partnership
Investment [Line Items]
Number of partnerships consolidated | partnership	2			2
Collateral amounts	$ 1,379,856	$ 1,306,932
Investment fair value changes, net	(175,558)	128,049	$ (588,438)
Other income, net	21,204	12,018	4,188
Interest income	707,854	574,926	571,916
Mortgage servicing rights income (loss), net	14,879	2,380	(9,694)
Strategic investments
Investment [Line Items]
Investment fair value changes, net	13,000	0
Other income, net	900	800
MSRs
Investment [Line Items]
Servicing asset, fair value	25,421	12,438
Associated Principal	$ 2,190,000	2,120,000
RWT Horizons | Strategic investments
Investment [Line Items]
Number of investments made | investment	29
Investments	$ 25,000
Churchill Finance | Strategic investments
Investment [Line Items]
Number of investments made | investment	5
Servicer advance financing
Investment [Line Items]
Collateral amounts	$ 240,000
Income (loss) on investments	20,000	12,000	11,000
Investment fair value changes, net	(11,000)	(1,000)	(9,000)
Held-for sale residential loans
Investment [Line Items]
Servicing asset, fair value	269,259	350,923
Servicing asset, unpaid principal balance on underlying loan	11,340,000
Excess MSRs
Investment [Line Items]
Servicing asset, fair value	39,035	44,231
Investment fair value changes, net	(5,000)	(8,000)	(8,000)
Interest income	16,000	$ 13,000	$ 12,000
Fair value option elected aggregate carrying amount, asset	$ 5,000

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - Residential Loans - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment [Line Items]
Principal and interest advances	$ 81,447	$ 94,148
Escrow advances (taxes and insurance advances)	123,541	172,847
Corporate advances	35,377	43,958
Total Servicer Advance Receivables	$ 240,365	$ 310,953

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value	$ 3,975,000	$ 23,150,000
Notional Amount	1,772,298,000	6,861,921,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(16,855,000)	(3,317,000)
Notional Amount	908,532,000	1,619,790,000
Derivative Assets
Derivative [Line Items]
Fair Value	20,830,000	26,467,000
Notional Amount	863,766,000	5,242,131,000
Interest rate agreements | Derivative Liabilities
Derivative [Line Items]
Fair Value	0	(1,251,000)
Notional Amount	0	283,100,000
Interest rate agreements | Derivative Assets
Derivative [Line Items]
Fair Value	14,625,000	611,000
Notional Amount	285,000,000	161,500,000
TBAs
Derivative [Line Items]
Notional Amount	1,070,000,000	3,310,000,000
TBAs | Derivative Liabilities
Derivative [Line Items]
Fair Value	(16,784,000)	(658,000)
Notional Amount	845,000,000	870,000,000
TBAs | Derivative Assets
Derivative [Line Items]
Fair Value	1,893,000	2,880,000
Notional Amount	220,000,000	2,440,000,000
Futures
Derivative [Line Items]
Notional Amount	411,000,000	72,000,000
Futures | Derivative Liabilities
Derivative [Line Items]
Fair Value	(57,000)	(905,000)
Notional Amount	60,000,000	62,500,000
Futures | Derivative Assets
Derivative [Line Items]
Fair Value	3,976,000	25,000
Notional Amount	350,600,000	9,000,000
Swaptions | Derivative Assets
Derivative [Line Items]
Fair Value	0	18,318,000
Notional Amount	0	1,660,000,000
Loan purchase and interest rate lock commitments | Derivative Liabilities
Derivative [Line Items]
Fair Value	(14,000)	(503,000)
Notional Amount	3,532,000	404,190,000
Loan purchase and interest rate lock commitments | Derivative Assets
Derivative [Line Items]
Fair Value	336,000	4,633,000
Notional Amount	$ 8,166,000	$ 971,631,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional amount	$ 1,772,298,000	$ 6,861,921,000
Stockholders' equity attributable to parent	1,083,985,000	1,386,087,000	$ 1,110,899,000	$ 1,827,231,000
Interest Expense
Derivative [Line Items]
Expected amortization of realized losses related to terminated cash flow hedges	4,000,000
Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Stockholders' equity attributable to parent	(72,303,000)	(76,430,000)	(80,557,000)
Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	(58,648,000)	196,566,000	66,482,000
LPCs, IRLCs, and FSCs | Mortgage Banking Activities, Net
Derivative [Line Items]
Changes in fair value of assets	(55,000,000)	11,000,000	57,000,000
Interest Rate Contract
Derivative [Line Items]
Notional amount	285,000,000	2,100,000,000
TBAs
Derivative [Line Items]
Notional amount	1,070,000,000	3,310,000,000
Futures
Derivative [Line Items]
Notional amount	411,000,000	72,000,000
Residential and Commercial Loans
Derivative [Line Items]
Valuation adjustments on derivatives	184,000,000	41,000,000	(93,000,000)
Interest rate agreements | Cash Flow Hedging
Derivative [Line Items]
Valuation adjustments on derivatives	$ 0	$ 0	$ (33,000,000)

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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Total interest expense	$ (552,400)	$ (426,749)	$ (448,005)
Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Net interest expense on cash flows hedges	0	0	(860)
Realized net losses reclassified from other comprehensive income	(4,127)	(4,127)	(3,188)
Total interest expense	$ (4,127)	$ (4,127)	$ (4,048)

Other Assets and Liabilities -

Other Assets and Liabilities - Summary of Other Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest receivable		$ 60,893	$ 47,515
Deferred tax asset		41,931	20,867
Investment receivable		36,623	82,781
Operating lease right-of-use assets		16,177	18,772
Margin receivable		13,802	7,269
Fixed assets and leasehold improvements		12,616	9,019
REO		6,455	36,126	$ 8,413
Income tax receivables		3,399	22
Other		19,346	8,746
Total Other Assets	[1]	211,240	$ 231,117
Fixed assets		21,000
Accumulated depreciation		$ 8,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _2

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest payable		$ 46,612	$ 39,297
Accrued compensation		30,929	74,636
Payable to non-controlling interests		44,859	42,670
Operating lease liabilities		18,563	20,960
Loan and MSR repurchase reserve		7,051	9,306
Guarantee obligations		6,344	7,459
Margin payable		5,944	24,368
Accrued operating expenses		5,740	4,377
Bridge loan holdbacks		3,301	3,109
Current accounts payable		4,234	8,273
Other		6,627	11,333
Total Accrued Expenses and Other Liabilities	[1]	$ 180,203	$ 245,788
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - REO Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) partnership asset	Dec. 31, 2021 USD ($) asset	Dec. 31, 2020 USD ($)	Dec. 31, 2018 partnership
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 36,126	$ 8,413
Transfers to REO	8,494	40,038
Liquidations	(39,673)	(12,642)
Changes in fair value, net	1,507	317
Balance at End of Period	6,455	36,126	$ 8,413
Realized gains from liquidation	$ 2,000	$ 300
Number of REO properties recorded on balance sheet | asset	28	34
Number of partnerships consolidated | partnership	2			2
Co-investors gains (losses)	$ 2,000	$ 2,000	(200)
Legacy Sequoia
Other Real Estate [Roll Forward]
Balance at beginning of period	61	638
Transfers to REO	544	217
Liquidations	(505)	(956)
Changes in fair value, net	443	162
Balance at End of Period	$ 544	$ 61	638
Number of REO properties recorded on balance sheet | asset	2	2
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 2,028	$ 646
Transfers to REO	3,976	3,268
Liquidations	(3,139)	(2,137)
Changes in fair value, net	34	251
Balance at End of Period	$ 2,899	$ 2,028	646
Number of REO properties recorded on balance sheet | asset	24	24
CAFL
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 20,969	$ 2,529
Transfers to REO	0	21,129
Liquidations	(20,969)	(2,034)
Changes in fair value, net	0	(655)
Balance at End of Period	$ 0	$ 20,969	2,529
Number of REO properties recorded on balance sheet | asset	0	3
Co-Investors Interests
Other Real Estate [Roll Forward]
Carrying value of interests	$ 23,000
Non-controlling interest in consolidated HEI entity
Other Real Estate [Roll Forward]
Carrying value of interests	22,000
Co-investors gains (losses)	5,000	$ 400
BPL bridge loans
Other Real Estate [Roll Forward]
Balance at beginning of period	13,068	4,600
Transfers to REO	3,974	15,424
Liquidations	(15,060)	(7,515)
Changes in fair value, net	1,030	559
Balance at End of Period	$ 3,012	$ 13,068	$ 4,600
Number of REO properties recorded on balance sheet | asset	2	5

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		12 Months Ended
		Dec. 31, 2022 USD ($) facility	Dec. 31, 2021 USD ($) facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 2,029,679,000	$ 2,177,362,000
Line of Credit
Short-term Debt [Line Items]
Number of Facilities | facility		19	13
Outstanding Balance		$ 1,620,096,000	$ 1,882,915,000
Line of Credit | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		7	7
Outstanding Balance		$ 703,406,000	$ 1,669,344,000
Limit		$ 2,550,000,000	$ 2,900,000,000
Weighted Average Interest Rate		6.16%	1.87%
Weighted Average Days Until Maturity		267 days	153 days
Line of Credit | Business purpose loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		4	2
Outstanding Balance		$ 680,100,000	$ 138,746,000
Limit		$ 1,650,000,000	$ 350,000,000
Weighted Average Interest Rate		6.93%	3.34%
Weighted Average Days Until Maturity		179 days	105 days
Line of Credit | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		7	4
Outstanding Balance		$ 124,909,000	$ 74,825,000
Limit		$ 0	$ 0
Weighted Average Interest Rate		5.22%	1.13%
Weighted Average Days Until Maturity		27 days	33 days
Line of Credit | HEI warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		1
Outstanding Balance		$ 111,681,000
Limit		$ 150,000,000
Weighted Average Interest Rate		8.54%
Weighted Average Days Until Maturity		306 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 206,510,000	$ 294,447,000
Limit		$ 290,000,000	$ 350,000,000
Weighted Average Interest Rate		6.67%	1.90%
Weighted Average Days Until Maturity		305 days	306 days
Promissory notes
Short-term Debt [Line Items]
Outstanding Balance		$ 27,058,000
Weighted Average Interest Rate		6.64%
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance		$ 176,015,000	$ 0
Weighted Average Interest Rate		4.75%
Weighted Average Days Until Maturity		227 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 December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, 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	Dec. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Total Collateral for Short-Term Debt Facilities	$ 2,299,034	$ 2,450,304
Line of Credit
Short-term Debt [Line Items]
Total real estate securities owned	178,070	99,005
Restricted cash and other assets	1,097	1,962
Total Collateral for Short-Term Debt Facilities	2,017,062	2,107,451
Servicer advance financing
Short-term Debt [Line Items]
Total Collateral for Short-Term Debt Facilities	281,972	342,853
Cash	12,713	6,480
Restricted cash	0	25,420
Servicer advances	269,259	310,953
Residential loans, held-for-sale, at fair value | Line of Credit
Short-term Debt [Line Items]
Short term debt, restricted	775,545	1,838,797
Business purpose loans | Line of Credit
Short-term Debt [Line Items]
Short term debt, restricted	871,072	167,687
HEI | Line of Credit
Short-term Debt [Line Items]
Short term debt, restricted	191,278	0
On balance sheet | Line of Credit
Short-term Debt [Line Items]
On balance sheet	72,133	5,823
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Line of Credit
Short-term Debt [Line Items]
Trading securities pledged as collateral	74,170	61,525
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Line of Credit
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 31,767	$ 31,657

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Jun. 30, 2020	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Aug. 31, 2022	Jul. 01, 2022	Aug. 31, 2017
Short-term Debt [Line Items]
Average balance of short-term debt			$ 1,650,000,000	$ 1,670,000,000
Accrued interest payable on short-term debt	$ 7,000,000		7,000,000	2,000,000
Committed line of credit	10,000,000		10,000,000
Fair market value of committed line of credit	1,000,000		1,000,000
Amount outstanding under credit facilities	0		0	0
Borrowings	1,746,145,000		1,746,145,000	1,650,576,000
Debt instrument, unamortized deferred issuance costs	12,720,000		12,720,000	9,743,000
Convertible notes
Short-term Debt [Line Items]
Debt instrument, unamortized deferred issuance costs	1,000,000		1,000,000
Repurchased debt instrument, face amount	22,000,000		22,000,000
Gain (loss) on extinguishment of debt	400,000
Convertible notes
Short-term Debt [Line Items]
Debt instrument, unamortized deferred issuance costs						$ 1,000,000
4.75% convertible senior notes | Convertible notes
Short-term Debt [Line Items]
Borrowings	$ 199,000,000		$ 199,000,000	$ 198,629,000	$ 199,000,000
Debt instrument, interest rate (as a percent)	4.75%		4.75%	4.75%	4.75%			4.75%
Debt instrument, unamortized deferred issuance costs				$ 1,836,000
Repurchased debt instrument, face amount	$ 10,000,000	$ 46,000,000	$ 10,000,000
Gain (loss) on extinguishment of debt	2,000,000	$ 10,000,000
Riverbend
Short-term Debt [Line Items]
Promissory notes							$ 43,000,000
Debt instrument, periodic payment, principal			16,000,000
Riverbend | Minimum
Short-term Debt [Line Items]
Fixed interest rate (as a percentage)							6%
Riverbend | Maximum
Short-term Debt [Line Items]
Fixed interest rate (as a percentage)							8%
Servicer advance financing
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	500,000		500,000
Unamortized capitalized commitment costs	$ 1,000,000		1,000,000
Business Purpose Loan Warehouse Facilities
Short-term Debt [Line Items]
increase in short term debt from reclassification			$ 900,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Short-term debt	[1]	$ 2,029,679	$ 2,177,362
Within 30 days
Short-term Debt [Line Items]
Short-term debt		89,216
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		516,625
Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,423,838
Line of Credit
Short-term Debt [Line Items]
Short-term debt		1,620,096	1,882,915
Line of Credit | Residential loans, held-for-sale, at fair value
Short-term Debt [Line Items]
Short-term debt		703,407
Line of Credit | Business Purpose Loans
Short-term Debt [Line Items]
Short-term debt		680,100
Line of Credit | Real estate securities
Short-term Debt [Line Items]
Short-term debt		124,909
Line of Credit | HEI warehouse
Short-term Debt [Line Items]
Short-term debt		111,681
Line of Credit | Within 30 days
Short-term Debt [Line Items]
Short-term debt		89,216
Line of Credit | Within 30 days | Residential loans, held-for-sale, at fair value
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Within 30 days | Business Purpose Loans
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Within 30 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		89,216
Line of Credit | Within 30 days | HEI warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		489,567
Line of Credit | 31 to 90 days | Residential loans, held-for-sale, at fair value
Short-term Debt [Line Items]
Short-term debt		186,287
Line of Credit | 31 to 90 days | Business Purpose Loans
Short-term Debt [Line Items]
Short-term debt		267,588
Line of Credit | 31 to 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		35,693
Line of Credit | 31 to 90 days | HEI warehouse
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,041,313
Line of Credit | Over 90 days | Residential loans, held-for-sale, at fair value
Short-term Debt [Line Items]
Short-term debt		517,120
Line of Credit | Over 90 days | Business Purpose Loans
Short-term Debt [Line Items]
Short-term debt		412,512
Line of Credit | Over 90 days | Real estate securities
Short-term Debt [Line Items]
Short-term debt		0
Line of Credit | Over 90 days | HEI warehouse
Short-term Debt [Line Items]
Short-term debt		111,681
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		206,510	294,447
Servicer advance financing | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | Over 90 days
Short-term Debt [Line Items]
Short-term debt		206,510
Promissory notes
Short-term Debt [Line Items]
Short-term debt		27,058
Promissory notes | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Promissory notes | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		27,058
Promissory notes | Over 90 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net
Short-term Debt [Line Items]
Short-term debt		176,015	$ 0
Convertible notes, net | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | Over 90 days
Short-term Debt [Line Items]
Short-term debt		$ 176,015
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, 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)	Dec. 31, 2022 USD ($) series trust	Dec. 31, 2021 USD ($) series
CAFL
Debt Instrument [Line Items]
Number of bridge securitization trusts | trust	2
Asset-backed securities issued
Debt Instrument [Line Items]
ABS Issued, Net	$ 7,986,752,000	$ 9,253,557,000
Asset-backed securities issued | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	(1,163,285,000)	34,092,000
Asset-backed securities issued | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	8,944,351,000	8,970,474,000
Asset-backed securities issued | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	205,686,000	248,991,000
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 184,191,000	$ 227,881,000
Number of Series | series	20	20
Asset-backed securities issued | Legacy Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (16,036,000)	$ (32,243,000)
Asset-backed securities issued | Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	2.69%	0.23%
Asset-backed securities issued | Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	5.19%	1.44%
Asset-backed securities issued | Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 200,047,000	$ 259,505,000
Asset-backed securities issued | Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	180,000	619,000
Asset-backed securities issued | Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 2,971,109,000	$ 3,383,048,000
Number of Series | series	17	16
Asset-backed securities issued | Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (682,477,000)	$ (2,774,000)
Asset-backed securities issued | Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	2.57%	2.40%
Asset-backed securities issued | Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	6.13%	5.03%
Asset-backed securities issued | Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,595,715,000	$ 3,353,073,000
Asset-backed securities issued | Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	57,871,000	32,749,000
Asset-backed securities issued | CAFL
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,115,807,000	$ 3,474,898,000
Number of Series | series	19	16
Asset-backed securities issued | CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (331,371,000)	$ 16,407,000
Asset-backed securities issued | CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	2.34%	2.64%
Asset-backed securities issued | CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	5.92%	5.24%
Asset-backed securities issued | CAFL | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,322,250,000	$ 3,264,766,000
Asset-backed securities issued | CAFL | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	124,928,000	193,725,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,222,150,000	$ 1,588,463,000
Number of Series | series	3	3
Debt instrument, face amount	$ 86,000,000	$ 145,000,000
Asset-backed securities issued | Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (99,830,000)	$ 41,111,000
Asset-backed securities issued | Freddie Mac SLST | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	3.50%	3.50%
Asset-backed securities issued | Freddie Mac SLST | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	4.75%	4.75%
Asset-backed securities issued | Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,306,652,000	$ 1,535,638,000
Asset-backed securities issued | Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	15,328,000	11,714,000
Asset-backed securities issued | Freddie Mac K-Series
Debt Instrument [Line Items]
ABS Issued, Net	$ 392,785,000	$ 441,857,000
Range of weighted average interest rates, by series (as a percent)	3.41%	3.41%
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]
ABS Issued, Net	$ (25,319,000)	$ 12,973,000
Asset-backed securities issued | Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	410,725,000	418,700,000
Asset-backed securities issued | Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	7,379,000	10,184,000
Asset-backed securities issued | HEI
Debt Instrument [Line Items]
ABS Issued, Net	$ 100,710,000	$ 137,410,000
Range of weighted average interest rates, by series (as a percent)	3.78%	3.31%
Number of Series | series	1	1
Asset-backed securities issued | HEI | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (8,252,000)	$ (1,382,000)
Asset-backed securities issued | HEI | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	108,962,000	138,792,000
Asset-backed securities issued | HEI | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	0	0
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount	$ 485,000,000	$ 270,000,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($)		3 Months Ended	12 Months Ended
		Sep. 30, 2020	Dec. 31, 2022	Dec. 31, 2052	May 29, 2029	Mar. 31, 2029	Jul. 31, 2023	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Debt Instrument [Line Items]
Other assets	[1]		$ 211,240,000						$ 231,117,000
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
VIE, ownership interest rate (as a percent)			80%
Variable Interest Entity, Primary Beneficiary | HEI
Debt Instrument [Line Items]
ABS issued, at amortized cost										$ 146,000,000
CoreVest | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
ABS issued, at amortized cost								$ 215,000,000		$ 270,000,000
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
ABS issued, at amortized cost		$ 210,000,000
2022 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			$ 215,000,000
Bridge loan			232,000,000
Restricted cash			18,000,000
2022 Asset Backed Securities Sold | CoreVest | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount			209,000,000
Debt discount			6,000,000
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount			85,000,000
Debt discount			$ 1,000,000
Debt instrument, interest rate (as a percent)			4.75%
VIE, ownership interest rate (as a percent)		100%
Asset-backed Securities | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)				2%		2%	7.75%
Asset-backed Securities | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			$ 485,000,000						270,000,000
Bridge loan			284,000,000
Restricted cash			16,000,000
Securitized asset backed securities, borrowing capacity			250,000,000
Other assets			11,000,000
Asset-backed Securities | CoreVest | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount			269,000,000
Debt discount			$ 1,000,000
Debt instrument, interest rate (as a percent)			4.32%
Asset-backed Securities | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount			$ 86,000,000						$ 145,000,000
2021 Asset Backed Securities Sold | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)					2%
2021 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			270,000,000
Securitized asset backed securities, borrowing capacity			$ 300,000,000
2021 Asset Backed Securities Sold | CoreVest | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)			2.34%
Contractual maturities of over five years | Asset-backed Securities
Debt Instrument [Line Items]
Contractual maturities of ABS (in years)			5 years
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_4

Asset-Backed Securities Issued - Accrued Interest Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 24,808	$ 25,401
CAFL
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	10,918	11,030
Freddie Mac SLST
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	3,561	4,630
Freddie Mac K-Series
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	1,167	1,190
Asset-backed securities issued | Legacy Sequoia
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	282	99
Asset-backed securities issued | Sequoia
Debt Instrument [Line Items]
Amortization of deferred ABS issuance costs	$ 8,880	$ 8,452

Long-Term Debt - Schedule of Co

Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Aug. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2020	Jun. 30, 2019	Aug. 31, 2017
Debt Instrument [Line Items]
Borrowings	$ 1,746,145,000	$ 1,650,576,000
Unamortized Deferred Issuance Costs / Discount	(12,720,000)	(9,743,000)
Net Carrying Value	1,733,425,000	1,640,833,000
Line of Credit
Debt Instrument [Line Items]
Borrowings	1,079,353,000	990,155,000
Unamortized Deferred Issuance Costs / Discount	(2,153,000)	(1,672,000)
Net Carrying Value	1,077,200,000	988,483,000
Convertible notes
Debt Instrument [Line Items]
Unamortized Deferred Issuance Costs / Discount				$ (1,000,000)
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Borrowings	139,500,000
Unamortized Deferred Issuance Costs / Discount	(733,000)
Net Carrying Value	$ 138,767,000
Trust Preferred Securities and Subordinated Notes | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%
Trust preferred securities
Debt Instrument [Line Items]
Borrowings		139,500,000
Unamortized Deferred Issuance Costs / Discount		(779,000)
Net Carrying Value	$ 100,000,000	$ 138,721,000
Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%	2.25%
Facility A | Recourse Subordinate Securities Financing
Debt Instrument [Line Items]
Borrowings		$ 144,385,000
Unamortized Deferred Issuance Costs / Discount		(313,000)
Net Carrying Value		$ 144,072,000
Weighted Average Interest Rate (as a percent)		4.21%
Facility A | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 130,408,000
Unamortized Deferred Issuance Costs / Discount	0
Net Carrying Value	$ 130,408,000
Weighted Average Interest Rate (as a percent)	5.71%
Facility B | Recourse Subordinate Securities Financing
Debt Instrument [Line Items]
Borrowings		$ 102,351,000
Unamortized Deferred Issuance Costs / Discount		(353,000)
Net Carrying Value		$ 101,998,000
Weighted Average Interest Rate (as a percent)		4.21%
Facility B | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 101,706,000
Unamortized Deferred Issuance Costs / Discount	(50,000)
Net Carrying Value	$ 101,656,000
Weighted Average Interest Rate (as a percent)	4.21%
Facility C | Recourse Subordinate Securities Financing
Debt Instrument [Line Items]
Borrowings		$ 91,707,000
Unamortized Deferred Issuance Costs / Discount		(376,000)
Net Carrying Value		$ 91,331,000
Weighted Average Interest Rate (as a percent)		4.75%
Facility C | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 68,995,000
Unamortized Deferred Issuance Costs / Discount	(125,000)
Net Carrying Value	$ 68,870,000
Weighted Average Interest Rate (as a percent)	4.75%
Facility D | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 404,622,000	$ 307,215,000
Unamortized Deferred Issuance Costs / Discount	(667,000)	(507,000)
Net Carrying Value	403,955,000	306,708,000
Limit	$ 750,000,000	$ 400,000,000
Facility D | Line of Credit | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.87%
Facility D | Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.75%
Facility E | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 308,933,000
Unamortized Deferred Issuance Costs / Discount	(838,000)
Net Carrying Value	308,095,000
Limit	$ 335,000,000	$ 400,000,000	$ 750,000,000		$ 600,000,000	$ 600,000,000
Facility E | Line of Credit | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.25%
Facility F | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 64,689,000
Unamortized Deferred Issuance Costs / Discount	(473,000)
Net Carrying Value	64,216,000
Limit	$ 500,000,000
Facility F | Line of Credit | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%
Facility F | Line of Credit | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Facility G | Line of Credit
Debt Instrument [Line Items]
Borrowings		234,349,000
Unamortized Deferred Issuance Costs / Discount		(123,000)
Net Carrying Value		234,226,000
Limit		$ 450,000,000
Facility G | Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.21%
Facility H | Line of Credit
Debt Instrument [Line Items]
Borrowings		$ 110,148,000
Unamortized Deferred Issuance Costs / Discount		0
Net Carrying Value		110,148,000
Limit		$ 450,000,000
Facility H | Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		3.35%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200,000	$ 150,200,000
Unamortized Deferred Issuance Costs / Discount	(1,282,000)	(2,072,000)
Net Carrying Value	$ 148,918,000	$ 148,128,000
Weighted Average Interest Rate (as a percent)	5.625%	5.625%					5.625%	5.625%
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 162,092,000	$ 172,092,000
Unamortized Deferred Issuance Costs / Discount	(2,410,000)	(3,384,000)
Net Carrying Value	$ 159,682,000	$ 168,708,000
Weighted Average Interest Rate (as a percent)	5.75%	5.75%					5.75%
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 215,000,000
Unamortized Deferred Issuance Costs / Discount	(6,142,000)
Net Carrying Value	$ 208,858,000
Weighted Average Interest Rate (as a percent)	7.75%
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 199,000,000	$ 198,629,000	$ 199,000,000
Unamortized Deferred Issuance Costs / Discount		(1,836,000)
Net Carrying Value		$ 196,793,000
Weighted Average Interest Rate (as a percent)	4.75%	4.75%	4.75%						4.75%

Long-Term Debt - Schedule of _2

Long-Term Debt - Schedule of Collateral for Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Collateral amounts	$ 1,379,856	$ 1,306,932
BPL bridge loans
Debt Instrument [Line Items]
Collateral amounts	897,782	554,597
Residential Real Estate
Debt Instrument [Line Items]
Collateral amounts	66,567	244,703
Commercial Real Estate | Facility A | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	178,439	247,227
Commercial Real Estate | Facility B | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	$ 237,068	$ 260,405

Long-Term Debt - Schedule of Ac

Long-Term Debt - Schedule of Accrued Interest Payable on Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2020	Jun. 30, 2019	Aug. 31, 2017
Line of Credit
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 3,364		$ 815
Convertible notes | 4.75% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 0		$ 3,564
Weighted Average Interest Rate (as a percent)	4.75%	4.75%	4.75%			4.75%
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 3,896		$ 3,896
Weighted Average Interest Rate (as a percent)	5.625%		5.625%	5.625%	5.625%
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 2,332		$ 2,474
Weighted Average Interest Rate (as a percent)	5.75%		5.75%	5.75%
Convertible notes | 7.75% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 741		$ 0
Weighted Average Interest Rate (as a percent)	7.75%
Subordinated Debt
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 1,633		581
Long-term Debt
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 11,966		$ 11,330

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details)		1 Months Ended				3 Months Ended				12 Months Ended
	Dec. 31, 2019	Jun. 30, 2022 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Aug. 31, 2017 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Jun. 30, 2022 USD ($) $ / shares	Sep. 30, 2021	Jun. 30, 2020 USD ($)	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2022 USD ($)	Aug. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)
Debt Instrument [Line Items]
Borrowings						$ 1,746,145,000				$ 1,746,145,000	$ 1,650,576,000
Debt instrument, unamortized deferred issuance costs						12,720,000				12,720,000	9,743,000
Long-term debt						1,733,425,000				1,733,425,000	1,640,833,000
Line of Credit
Debt Instrument [Line Items]
Borrowings						1,079,353,000				1,079,353,000	990,155,000
Debt instrument, unamortized deferred issuance costs						2,153,000				2,153,000	1,672,000
Long-term debt						1,077,200,000				1,077,200,000	988,483,000
Convertible notes
Debt Instrument [Line Items]
Debt instrument, unamortized deferred issuance costs															$ 1,000,000
Trust preferred securities
Debt Instrument [Line Items]
Borrowings											139,500,000
Debt instrument, unamortized deferred issuance costs											779,000
Long-term debt						100,000,000				$ 100,000,000	$ 138,721,000
Trust preferred securities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)										2.25%	2.25%
Subordinated Notes
Debt Instrument [Line Items]
Long-term debt						40,000,000				$ 40,000,000
Recourse Subordinate Securities Financing Receivable | Redwood
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time													4.21%
Recourse Subordinate Securities Financing Receivable | Redwood | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time								4.75%				4.21%
Recourse Subordinate Securities Financing Receivable | Redwood | October 2022 through September 2023
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time													5.71%
Recourse Subordinate Securities Financing Receivable | Redwood | October 2023 through September 2024
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time													7.21%
Recourse Subordinate Securities Financing Receivable | Redwood | March 2023 through February 2024 | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time												5.71%
Recourse Subordinate Securities Financing Receivable | Redwood | March 2024 through February 2025 | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time												7.21%
Recourse Subordinate Securities Financing Receivable | Redwood | July 2024 through June 2025 | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time								6.25%
Recourse Subordinate Securities Financing Receivable | Redwood | July 2025 to June 2026 | CAFL | Affiliated Entity
Debt Instrument [Line Items]
Long-term debt, weighted average interest rate, over time								7.75%
Facility E | Line of Credit
Debt Instrument [Line Items]
Limit		$ 600,000,000				335,000,000	$ 600,000,000			335,000,000	$ 400,000,000			$ 750,000,000		$ 600,000,000
Borrowings						308,933,000				308,933,000
Debt instrument, unamortized deferred issuance costs						838,000				838,000
Long-term debt						$ 308,095,000				$ 308,095,000
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)						7.75%				7.75%
Net proceeds from issuance of convertible debt		$ 208,000,000
Range of weighted average interest rates, by series (as a percent)		8.50%					8.50%
Convertible debt, conversion ratio							0.0956823
Convertible senior notes conversion per share (in dollars per share) | $ / shares		$ 10.45					$ 10.45
Borrowings						$ 215,000,000				$ 215,000,000
Debt instrument, unamortized deferred issuance costs						6,142,000				6,142,000
Long-term debt						$ 208,858,000				$ 208,858,000
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)					4.75%	4.75%				4.75%	4.75%			4.75%
Net proceeds from issuance of convertible debt					$ 238,000,000
Convertible debt, conversion ratio					0.0544764
Convertible senior notes conversion per share (in dollars per share) | $ / shares					$ 18.36
Borrowings						$ 199,000,000				$ 199,000,000	$ 198,629,000			$ 199,000,000
Debt instrument, unamortized deferred issuance costs											1,836,000
Debt instrument, face amount					$ 245,000,000
Interest expense yield					5.30%
Repurchased debt instrument, face amount						10,000,000			$ 46,000,000	$ 10,000,000
Gain (loss) on extinguishment of debt						$ 2,000,000			10,000,000
Long-term debt											$ 196,793,000
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)						5.75%				5.75%	5.75%						5.75%
Net proceeds from issuance of convertible debt			$ 195,000,000
Convertible debt, conversion ratio	0.0552644
Convertible senior notes conversion per share (in dollars per share) | $ / shares						$ 18.09				$ 18.09
Borrowings						$ 162,092,000				$ 162,092,000	$ 172,092,000
Debt instrument, unamortized deferred issuance costs						2,410,000				2,410,000	3,384,000
Debt instrument, face amount																	$ 201,000,000
Interest expense yield			6.30%
Repurchased debt instrument, face amount									29,000,000
Gain (loss) on extinguishment of debt									6,000,000
Long-term debt						$ 159,682,000				$ 159,682,000	$ 168,708,000
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Debt instrument, interest rate (as a percent)						5.625%				5.625%	5.625%						5.625%	5.625%
Net proceeds from issuance of convertible debt				$ 194,000,000
Convertible debt, conversion ratio				0.0548317
Convertible senior notes conversion per share (in dollars per share) | $ / shares						$ 18.24				$ 18.24
Borrowings						$ 150,200,000				$ 150,200,000	$ 150,200,000
Debt instrument, unamortized deferred issuance costs						1,282,000				1,282,000	2,072,000
Debt instrument, face amount																		$ 200,000,000
Interest expense yield				6.20%
Repurchased debt instrument, face amount									50,000,000
Gain (loss) on extinguishment of debt									$ 9,000,000
Percent of par at issuance				99.50%
Long-term debt						$ 148,918,000				$ 148,918,000	$ 148,128,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)			3 Months Ended	12 Months Ended
		Jul. 01, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) repurchase_request tranche loan lease	Dec. 31, 2021 USD ($) loan repurchase_request	Dec. 31, 2020 USD ($) loan	Dec. 31, 2018 partnership	Sep. 30, 2022 lease	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Lessee, number of leases | lease				10
Present value of remaining lease payments				$ 21,111,000
Operating lease expense				5,000,000	$ 4,000,000	$ 4,000,000
Net market valuation adjustments				(227,186,000)	321,433,000	(541,399,000)
Unamortized leasehold improvements				3,000,000
Leasehold amortization expense				500,000	500,000	500,000
Number of operating leases entered into | lease								3
Operating lease liabilities				$ 18,563,000	$ 20,960,000
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				$ 16,177,000	$ 18,772,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]				Other assets	Other assets
Weighted average remaining lease term				5 years
Discount rate (as a percent)				5.20%
Derivative liabilities	[1]			$ 16,855,000	$ 3,317,000
Number of partnerships, committed to fund | partnership							2
Risk share income				1,289,000	2,815,000	$ 4,367,000
Guarantee obligations				6,344,000	7,459,000
Guarantee obligation, credit reserve				5,000,000
SPE, assets				30,000,000	34,000,000
SPE, liabilities				6,000,000	7,000,000
Repurchase reserve				6,000,000	9,000,000
Loan and MSR repurchase reserve				$ 7,051,000	$ 9,306,000
Residential loans repurchase requests | repurchase_request				14	4
Residential loans, number of loans repurchased | loan				1	2	1
Residential loans repurchase (reversal) provision				$ 3,000,000	$ 1,000,000	$ 4,000,000
Mortgage loans on real estate, loans repurchased				43,000	200,000	100,000
Aggregate amount of loss contingency reserves				2,000,000
Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance				822,063,000	1,813,865,000
Fair value of loans				$ 780,781,000	$ 1,845,282,000
Number of loans in foreclosure | loan				0	0
Business Purpose Loans
Loss Contingencies [Line Items]
Loan and MSR repurchase reserve				$ 1,000,000	$ 0
Residential loans repurchase requests | repurchase_request				8	0
Residential loans repurchase (reversal) provision				$ 1,000,000	$ 0
Mortgage Banking And Investment Activities
Loss Contingencies [Line Items]
Market valuation changes in fair value of guarantee asset				(100,000)	(100,000)	$ (1,000,000)
Maximum
Loss Contingencies [Line Items]
Loss in period				100,000
Guarantee Obligations
Loss Contingencies [Line Items]
Original principal balance of loans sold subject to risk sharing agreement									$ 3,190,000,000	$ 3,190,000,000
Potential future payments on risk sharing agreements				44,000,000
Unpaid principal balance				$ 439,000,000
FICO credit score				760
Loan to value ratio				74%
Guarantee Obligations | Residential Loans
Loss Contingencies [Line Items]
Number of loans in foreclosure | tranche				5
Loans held as assets amount in foreclosure				$ 900,000
Riverbend
Loss Contingencies [Line Items]
Earnout period		2 years
Potential future payments on loans		$ 25,300,000
Contingent consideration				0
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans
Loss Contingencies [Line Items]
Fair value of loans				208,000	2,923,000
Financing Receivables, Equal to Greater than 90 Days Past Due | Guarantee Obligations
Loss Contingencies [Line Items]
Fair value of loans				8,000,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Net market valuation adjustments				(500,000)	1,000,000
Other commitment				904,000,000
Derivative liabilities				2,000,000	$ 1,000,000
Commitment To Acquire HEIs
Loss Contingencies [Line Items]
Cumulative commitment				69,000,000
Commitment To Fund Strategic Investment
Loss Contingencies [Line Items]
Other commitment				15,000,000
Payments for other commitments			$ 25,000,000
Commitment To Fund RWT Horizons Investments
Loss Contingencies [Line Items]
Other commitment				$ 1,000,000
Payments for other commitments			$ 5,000,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 4,956
2024	4,601
2025	3,580
2026	3,420
2027	2,563
2028	1,991
Total Lease Commitments	21,111
Less: Imputed interest	(2,548)
Operating Lease Liabilities	$ 18,563	$ 20,960

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,386,087	$ 1,110,899	$ 1,827,231
Total other comprehensive loss	(59,941)	(4,706)	(45,734)
Balance at End of Period	1,083,985	1,386,087	1,110,899
Available-for-Sale Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	67,503	76,336
Other comprehensive (loss) income before reclassifications	(64,704)	8,016
Amounts reclassified from other accumulated comprehensive (loss) income	636	(16,849)
Total other comprehensive loss	(64,068)	(8,833)
Balance at End of Period	3,435	67,503	76,336
Interest Rate Agreements Accounted for as Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(76,430)	(80,557)
Other comprehensive (loss) income before reclassifications	0	0
Amounts reclassified from other accumulated comprehensive (loss) income	4,127	4,127
Total other comprehensive loss	4,127	4,127
Balance at End of Period	$ (72,303)	$ (76,430)	$ (80,557)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ (175,558)	$ 128,049	$ (588,438)
Realized gains, net	(5,334)	(17,993)	(30,424)
Net income before provision for income taxes	(183,440)	338,091	(586,455)
Interest expense	552,400	426,749	$ 448,005
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	2,541	(388)
Realized gains, net	(1,905)	(16,461)
Net income before provision for income taxes	636	(16,849)
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]
Net income before provision for income taxes	4,127	4,127
Interest expense	$ 4,127	$ 4,127

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jul. 31, 2022	Feb. 28, 2018
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock	$ 68,035,000	$ 21,944,000	$ 5,881,000
Amount of shares repurchased during period	$ 56,496,000	$ 0	$ 21,659,000
Share Repurchase Program 2022
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount				$ 125,000,000
Prior Share Repurchase Program
Stockholders Equity Note [Line Items]
Stock repurchase program, authorized amount					$ 100,000,000
Shares repurchased during period (in shares)	7,100,000
Share Repurchase Plan, February 2018
Stockholders Equity Note [Line Items]
Stock repurchase program, remaining authorized repurchase amount	$ 101,000,000
Convertible debt securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	40,081,997		31,306,089
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share	226,975	18,736	12,622
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)	5,232,869	2,503,662	350,088
Direct stock purchase and dividend reinvestment plan (in shares)	0	100,000
Shares repurchased during period (in shares)	7,128,891	0	3,047,335
Amount of shares repurchased during period	$ 71,000	$ 0	$ 30,000
ATM Offerings | Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)	5,200,000	1,600,000	100,000
Net proceeds from issuance of common stock	$ 67,000,000	$ 20,000,000	$ 2,000,000
Authorized issuance amount	$ 175,000,000
Direct Stock Purchases and Dividend Reinvestment Plan | Common Stock
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock		$ 1,000,000
Remaining shares outstanding for future offerings (in shares)	6,000,000

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net (loss) income attributable to Redwood	$ (163,520)	$ 319,613	$ (581,847)
Less: Dividends and undistributed earnings allocated to participating securities	(4,335)	(10,635)	(1,990)
Net (loss) income allocated to common shareholders	$ (167,855)	$ 308,978	$ (583,837)
Basic weighted average common shares outstanding (in shares)	117,227,846	113,230,190	113,935,605
Basic earnings (loss) per common share (in dollars per share)	$ (1.43)	$ 2.73	$ (5.12)
Diluted Earnings per Common Share:
Net (loss) income attributable to Redwood	$ (163,520)	$ 319,613	$ (581,847)
Less: Dividends and undistributed earnings allocated to participating securities	(4,335)	(9,880)	(1,990)
Add back: interest expense of convertible notes for the period, net of tax	0	27,463	0
Net (loss) income allocated to common shareholders	$ (167,855)	$ 337,196	$ (583,837)
Basic weighted average common shares outstanding (in shares)	117,227,846	113,230,190	113,935,605
Net effect of dilutive equity awards (in shares)	0	273,236	0
Net effect of assumed convertible notes conversion to common shares (in shares)	0	28,566,875	0
Diluted weighted average common shares outstanding (in shares)	117,227,846	142,070,301	113,935,605
Diluted earnings (loss) per common share (in dollars per share)	$ (1.43)	$ 2.37	$ (5.12)

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Dec. 31, 2020	May 31, 2020	Dec. 31, 2018	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 40,188	$ 42,383
Weighted average amortization period remaining for equity awards (in years)				2 years
Long-term incentive award expense				$ 23,101	$ 19,938	$ 12,439
Performance-based valuation adjustment				$ 3,205
Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under Redwood's Incentive Plan (in shares)				2,896,604	5,958,390
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 0	$ 0
Share of common stock authorized (in shares)				850,000
Performance-based valuation adjustment				$ 0
Share purchased (in shares)				657,777
Executive Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock available for grant under Redwood's Incentive Plan (in shares)				151,005
Number of additional shares authorized (in shares)				200,000
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long-term incentive award expense				$ 100	$ 500	$ 1,000
Number of stock awards granted (in shares)				0	0	0
Number of stock awards forfeited (in shares)				341	0	34,857
Granted (in dollars per share)				$ 0	$ 0	$ 0
Number of stock awards vested (in shares)				27,800	50,857	102,615
Restricted Stock Awards | Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 0	$ 84
Performance-based valuation adjustment				0
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 5,000
Weighted average amortization period remaining for equity awards (in years)				1 year
Long-term incentive award expense				$ 3,000	$ 2,000	$ 1,000
Number of stock awards granted (in shares)				558,388	272,261	205,482
Number of stock awards forfeited (in shares)				48,915	45,343	130,155
Granted (in dollars per share)				$ 8.38	$ 8.80	$ 16.86
Number of stock awards vested (in shares)				134,426	78,270	68,076
Restricted Stock Units | Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 5,068	$ 3,589
Performance-based valuation adjustment				0
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				20,000
Long-term incentive award expense				$ 13,000	$ 9,000	$ 8,000
Unvested outstanding stock awards (in units)				2,335,551	2,552,186
Weighted-average grant date fair value of stock awards (in dollars per unit)				$ 10.74	$ 12.07
Number of stock awards granted (in shares)				1,759,344	1,588,862	1,186,154
Number of stock awards forfeited (in shares)				398,693	31,161	291,253
Share-based compensation, vesting period (in years)				4 years
Granted (in dollars per share)				$ 8.83	$ 12.04	$ 10.69
Deferred Stock Units | Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 19,849	$ 26,473
Performance-based valuation adjustment				0
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				$ 15,000
Long-term incentive award expense					$ 3,000	$ 100
Unvested outstanding stock awards (in units)				2,354,002	1,473,883
Weighted-average grant date fair value of stock awards (in dollars per unit)	$ 10.42				$ 15.68	$ 10.42
Number of stock awards granted (in shares)				1,086,153	518,173	473,845
Number of stock awards forfeited (in shares)				0	0	99,175	275,831
Share-based compensation, vesting period (in years)				3 years
BvTSR for tranche (as a percent)				25%	7.70%
Adjustment to stock-based compensation				$ 1,000
Performance Stock Units | Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost				15,271	$ 12,237
Performance-based valuation adjustment				$ 3,205
Performance Stock Units | Performance Share Units (PSUs), 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of stock awards (in dollars per unit)				$ 9.09
Vesting percentage if TSR is 25%				100%
Stock price valuation period				60 days
Grant date fair value assumptions, volatility rate				69%
Grant date fair value assumptions, risk-free rate				3.91%
Grant date fair value assumptions, dividend yield				0%
TSR performance period (in years)				3 years
Performance Stock Units | Performance Share Units (PSUs), 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in dollars per share)				$ 15.68
Grant date fair value assumptions, volatility rate				59%
Grant date fair value assumptions, risk-free rate				0.98%
Grant date fair value assumptions, dividend yield				0%
TSR performance period (in years)				3 years
Performance Stock Units | Performance Share Units (PSUs), 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in dollars per share)					$ 10.42
Grant date fair value assumptions, volatility rate					54%
Grant date fair value assumptions, risk-free rate					0.18%
Grant date fair value assumptions, dividend yield					0%
TSR performance period (in years)				3 years
Performance Stock Units | Performance Share Units (PSUs), 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value (in dollars per share)					$ 17.13
Stock price valuation period						60 days
Grant date fair value assumptions, volatility rate					15%
Grant date fair value assumptions, risk-free rate					1.68%
Grant date fair value assumptions, dividend yield					0%
TSR performance period (in years)				3 years	3 years
Performance Stock Units | Performance Share Units (PSUs), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock awards granted (in shares)				518,173		473,845
BvTSR for tranche (as a percent)				25%
Relative increase/decrease in vesting percentage based on TSR				50%
Vesting percentage cap if first 2 steps yield a vesting level greater than 100%			100%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)		3 years
Minimum | Performance Stock Units | Performance Share Units (PSUs), 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				0%
Minimum | Performance Stock Units | Performance Share Units (PSUs), 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0%
Minimum | Performance Stock Units | Performance Share Units (PSUs), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0%
First baseline vesting percentage			0%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period (in years)		4 years
Maximum | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average amortization period remaining for equity awards (in years)				2 years
Maximum | Performance Stock Units | Performance Share Units (PSUs), 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				250%
Maximum | Performance Stock Units | Performance Share Units (PSUs), 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200%
Maximum | Performance Stock Units | Performance Share Units (PSUs), 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	250%
First baseline vesting percentage			200%

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 42,383
Equity grants	26,459
Performance-based valuation adjustment	(3,205)
Equity grant forfeitures	(5,365)
Equity compensation expense	(20,084)
Unrecognized Compensation Cost at End of Period	40,188
Restricted Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	5,000
Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	20,000
Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized Compensation Cost at End of Period	15,000
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	84
Equity grants	0
Performance-based valuation adjustment	0
Equity grant forfeitures	(5)
Equity compensation expense	(79)
Unrecognized Compensation Cost at End of Period	0
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	3,589
Equity grants	4,688
Performance-based valuation adjustment	0
Equity grant forfeitures	(548)
Equity compensation expense	(2,661)
Unrecognized Compensation Cost at End of Period	5,068
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	26,473
Equity grants	11,672
Performance-based valuation adjustment	0
Equity grant forfeitures	(4,812)
Equity compensation expense	(13,484)
Unrecognized Compensation Cost at End of Period	19,849
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	12,237
Equity grants	9,875
Performance-based valuation adjustment	(3,205)
Equity grant forfeitures	0
Equity compensation expense	(3,636)
Unrecognized Compensation Cost at End of Period	15,271
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	224
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(224)
Unrecognized Compensation Cost at End of Period	$ 0

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock Activity (Details) - Restricted Stock Awards - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares
Beginning of period (in shares)	28,141	78,998	216,470
Granted (in shares)	0	0	0
Vested (in shares)	(27,800)	(50,857)	(102,615)
Forfeited (in shares)	(341)	0	(34,857)
Balance at End of Period (in shares)	0	28,141	78,998
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 14.74	$ 15.23	$ 14.85
Granted (in dollars per share)	0	0	0
Vested (in dollars per share)	14.74	15.50	14.44
Forfeited (in dollars per share)	14.66	0	15.16
Balance at End of Period (in dollars per share)	$ 0	$ 14.74	$ 15.23

Equity Compensation Plans - R_2

Equity Compensation Plans - Restricted Stock Units Activities (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares
Beginning of period (in shares)	431,072	282,424	275,173
Granted (in shares)	558,388	272,261	205,482
Vested (in shares)	(134,426)	(78,270)	(68,076)
Forfeited (in shares)	(48,915)	(45,343)	(130,155)
Balance at End of Period (in shares)	806,119	431,072	282,424
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 11.55	$ 16.09	$ 15.65
Granted (in dollars per share)	8.38	8.80	16.86
Vested (in dollars per share)	12.56	15.93	15.65
Forfeited (in dollars per share)	11.04	15.75	16.60
Balance at End of Period (in dollars per share)	$ 9.22	$ 11.55	$ 16.09

Equity Compensation Plans - Def

Equity Compensation Plans - Deferred Stock Units Activity (Details) - Deferred Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Units
Beginning of period (in shares)	4,022,088	2,805,144	2,630,805
Granted (in shares)	1,759,344	1,588,862	1,186,154
Distributions (in shares)	(551,401)	(340,757)	(720,562)
Forfeited (in shares)	(398,693)	(31,161)	(291,253)
Balance at End of Period (in shares)	4,831,338	4,022,088	2,805,144
Weighted Average Grant Date Fair Market Value
Beginning of period (in dollars per share)	$ 12.93	$ 13.84	$ 15.66
Granted (in dollars per share)	8.83	12.04	10.69
Distributions (in dollars per share)	11.35	15.82	14.31
Forfeited (in dollars per share)	12.07	17.65	16.25
Balance at End of Period (in dollars per share)	$ 11.31	$ 12.93	$ 13.84

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of Activity Related to ESPP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Stock Purchase Plan (ESPP) Activity [Roll Forward]
Balance at beginning of period	$ 7	$ 17	$ 4
Employee purchases	584	595	347
Cost of common stock issued	(555)	(605)	(334)
Balance at End of Period	$ 36	$ 7	$ 17

Equity Compensation Plans - S_2

Equity Compensation Plans - Summary of Activity Related to Executive Deferred Compensation Plan (Details) - Executive Deferred Compensation Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent [Roll Forward]
Balance at beginning of period	$ 2,730	$ 2,289	$ 2,454
New deferrals	1,083	1,017	726
Accrued interest	108	56	42
Withdrawals	(614)	(632)	(933)
Balance at End of Period	$ 3,307	$ 2,730	$ 2,289

Mortgage Banking Activities (De

Mortgage Banking Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 21,204	$ 12,018	$ 4,188
Mortgage Banking Activities, Net	(13,659)	235,744	78,472
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	5,431	5,418	(6,652)
Mortgage Banking Activities, Net	(21,282)	127,151	3,721
Residential Mortgage Banking Activities, Net | Residential loans, held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(131,675)	83,733	41,284
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	4,249	(352)	(4,535)
Residential Mortgage Banking Activities, Net | Risk management derivatives, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	100,713	38,352	(26,376)
Business Purpose Mortgage Banking
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	39,903	33,760	18,642
Mortgage Banking Activities, Net	7,623	108,593	74,751
Business Purpose Mortgage Banking | Risk management derivatives, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of risk management derivatives	56,731	2,708	(21,403)
Business Purpose Mortgage Banking | Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	(91,690)	63,872	82,510
Business Purpose Mortgage Banking | BPL bridge loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ 2,679	$ 8,253	$ (4,998)

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Mortgage servicing rights income (loss), net	$ 14,879	$ 2,380	$ (9,694)
Risk share income	1,289	2,815	4,367
FHLBC capital stock dividend	0	53	1,229
Bridge Loan Fees	5,276	4,194	3,812
BPL loan administration fee income	0	184	2,912
Other, net	(240)	2,392	1,562
Other Income, Net	$ 21,204	$ 12,018	$ 4,188

Operating Expenses - Components

Operating Expenses - Components of Operating Expenses (Details) - USD ($) $ in Thousands		3 Months Ended				12 Months Ended
	Oct. 15, 2019	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Line Items]
Fixed compensation expense						$ 63,642	$ 46,328	$ 46,689
Annual variable compensation expense						12,873	58,569	14,116
Long-term incentive award expense						23,101	19,938	12,439
Acquisition-related equity compensation expense						0	3,813	4,848
Systems and consulting						14,193	14,445	11,728
Office costs						8,574	7,837	7,794
Accounting and legal						6,644	4,975	7,928
Corporate costs						3,675	3,388	2,829
Other						8,206	5,925	5,127
Total General and Administrative Expenses						140,908	165,218	113,498
Portfolio Management Costs						7,951	5,758	4,204
Commissions						7,154	7,116	4,321
Underwriting costs						3,368	7,645	2,447
Transfer and holding costs						1,244	1,458	1,757
Loan acquisition costs						11,766	16,219	8,525
Goodwill impairment expense					$ 89,000	0	0	88,675
Amortization of purchase-related intangible assets						13,969	15,304	15,925
Other						1,621	1,391	4,185
Total Other Expenses						15,590	16,695	108,785
Total Operating Expenses						176,215	203,890	235,012
Severance costs		$ 7,000	$ 7,000			7,000
Variable compensation expense						1,000	3,000	5,000
Settlement in Common Stock
Goodwill [Line Items]
Long-term incentive award expense						20,000	14,000
Settlement in Cash
Goodwill [Line Items]
Long-term incentive award expense						3,000	6,000
Cash Based Retention Award
Goodwill [Line Items]
Cash based retention awards granted		3,000				$ 3,000	1,000	$ 8,000
Cash based retention awards, term				3 years
Cash Based Retention Award | Minimum
Goodwill [Line Items]
Cash based retention awards, term						1 year
Equity awards, vesting percentage								0%
Cash Based Retention Award | Maximum
Goodwill [Line Items]
Cash based retention awards, term						3 years
Equity awards, vesting percentage								400%
Cash Performance Awards | Certain Executives and Non-Executive Employees
Goodwill [Line Items]
Cash based retention awards granted		2,000				$ 2,000		$ 2,000
Cash-Settled Deferred Stock Units
Goodwill [Line Items]
Cash based retention awards granted		3,000				3,000	4,000	2,000
Unamortized compensation cost		$ 5,000				$ 5,000	7,000
Cash based retention awards, term						4 years
Variable compensation expense						$ 1,000	$ 2,000	$ 100
Long Term Relative TSR Performance Vesting Cash Awards
Goodwill [Line Items]
Cash based retention awards, service period						3 years
CoreVest
Goodwill [Line Items]
Restricted stock awards (in shares)	588,260

Taxes - Components of Net Defer

Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets
Net operating loss carryforward – state	$ 102,795	$ 98,011
Net capital loss carryforward – state	17,244	18,082
Net operating loss carryforward – federal	18,738	82
Real estate assets	2,851	1,347
Allowances and accruals	3,035	3,528
Goodwill and intangible assets	26,193	24,973
Other	3,803	3,016
Tax effect of unrealized (gains) / losses - OCI	365	(21)
Total Deferred Tax Assets	175,024	149,018
Deferred Tax Liabilities
Mortgage Servicing Rights	(7,475)	(3,617)
Interest rate agreements	(2,780)	(3,324)
Total Deferred Tax Liabilities	(10,255)	(6,941)
Valuation allowance	(122,838)	(121,210)
Total Net Deferred Tax Asset, net of Valuation Allowance	$ 41,931	$ 20,867

Taxes - Additional Information

Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Income Taxes [Line Items]
Valuation allowance net increase	$ 2,000
Deferred tax asset, valuation allowance	122,838	$ 121,210
Domestic Tax Authority
Income Taxes [Line Items]
Deferred tax asset, valuation allowance			$ 17,000
State and Local Jurisdiction
Income Taxes [Line Items]
Deferred tax asset, valuation allowance			$ 3,000
NOL carry forwards	1,200,000
Federal
Income Taxes [Line Items]
Estimated operating loss carry forwards	37,000
Federal | Subsidiaries
Income Taxes [Line Items]
NOL carry forwards	89,000
Federal | Net Operating Losses, Expiring In 2029
Income Taxes [Line Items]
NOL carry forwards	29,000
Federal | Net Operating Losses, Indefinite Carryforward Period
Income Taxes [Line Items]
NOL carry forwards	$ 9,000

Taxes - Provision for (Benefit

Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current Provision for Income Taxes
Federal	$ 340	$ 28,718	$ 1,598
State	496	9,859	(182)
Total Current Provision for Income Taxes	836	38,577	1,416
Deferred (Benefit) Provision for Income Taxes
Federal	(19,083)	(17,172)	(6,024)
State	(1,673)	(2,927)	0
Total Deferred (Benefit) Provision for Income Taxes	(20,756)	(20,099)	(6,024)
Total (Benefit From) Provision for Income Taxes	$ (19,920)	$ 18,478	$ (4,608)

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal statutory rate	21%	21%	21%
State taxes, net of federal tax effect, as applicable	0.90%	1.80%	0%
Differences in taxable income from GAAP income	(0.50%)	(2.90%)	(1.40%)
Change in valuation allowance	0%	(4.90%)	(2.80%)
REIT GAAP income or loss not subject to federal income tax	(10.50%)	(9.50%)	(16.00%)
Effective Tax Rate	10.90%	5.50%	0.80%

Segment Information - Additiona

Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Financial

Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Interest income		$ 707,854	$ 574,926	$ 571,916
Interest expense		(552,400)	(426,749)	(448,005)
Net Interest Income		155,454	148,177	123,911
Non-interest (loss) income
Mortgage banking activities, net		(13,659)	235,744	78,472
Investment fair value changes, net		(175,558)	128,049	(588,438)
Other income, net		21,204	12,018	4,188
Realized gains, net		5,334	17,993	30,424
Total non-interest (loss) income, net		(162,679)	393,804	(475,354)
General and administrative expenses		(140,908)	(165,218)	(113,498)
Portfolio management costs		(7,951)	(5,758)	(4,204)
Loan acquisition costs		(11,766)	(16,219)	(8,525)
Other expense				(108,785)
Other expenses		(15,590)	(16,695)	(108,785)
Benefit from (provision for) income taxes		19,920	(18,478)	4,608
Net (Loss) Income		(163,520)	319,613	(581,847)
Non-cash amortization (expense) income, net		(21,928)	(45,193)	(25,324)
Other significant non-cash expense: goodwill impairment	$ (89,000)	0	0	(88,675)
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income		45,202	48,953	17,839
Interest expense		(32,735)	(26,963)	(11,978)
Net Interest Income		12,467	21,990	5,861
Non-interest (loss) income
Mortgage banking activities, net		(21,282)	127,151	3,721
Investment fair value changes, net		0	0	0
Other income, net		0	0	0
Realized gains, net		0	0	0
Total non-interest (loss) income, net		(21,282)	127,151	3,721
General and administrative expenses		(22,566)	(33,574)	(16,318)
Portfolio management costs		0	0	(50)
Loan acquisition costs		(3,085)	(7,480)	(2,656)
Other expense				(4,114)
Other expenses		74	104
Benefit from (provision for) income taxes		12,814	(25,777)	4,567
Net (Loss) Income		(21,578)	82,414	(8,989)
Non-cash amortization (expense) income, net		(1,075)	(82)	(662)
Other significant non-cash expense: goodwill impairment				0
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Interest income		28,674	14,054	19,200
Interest expense		(18,041)	(7,230)	(13,145)
Net Interest Income		10,633	6,824	6,055
Non-interest (loss) income
Mortgage banking activities, net		7,623	108,593	74,622
Investment fair value changes, net		0	0	(101)
Other income, net		3,509	1,046	3,228
Realized gains, net		0	0	0
Total non-interest (loss) income, net		11,132	109,639	77,749
General and administrative expenses		(56,557)	(46,586)	(37,461)
Portfolio management costs		0	0	0
Loan acquisition costs		(8,681)	(8,100)	(5,859)
Other expense				(104,147)
Other expenses		(13,969)	(15,127)
Benefit from (provision for) income taxes		13,157	(8,122)	(4,063)
Net (Loss) Income		(44,285)	38,528	(67,726)
Non-cash amortization (expense) income, net		(15,071)	(16,452)	(18,426)
Other significant non-cash expense: goodwill impairment				(88,675)
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income		627,134	507,173	525,741
Interest expense		(445,154)	(351,635)	(375,262)
Net Interest Income		181,980	155,538	150,479
Non-interest (loss) income
Mortgage banking activities, net		0	0	129
Investment fair value changes, net		(191,148)	129,614	(586,333)
Other income, net		18,596	10,021	(1,725)
Realized gains, net		3,174	17,993	5,242
Total non-interest (loss) income, net		(169,378)	157,628	(582,687)
General and administrative expenses		(6,036)	(7,992)	(6,819)
Portfolio management costs		(7,951)	(5,758)	(4,154)
Loan acquisition costs		0	(635)	0
Other expense				194
Other expenses		(1,695)	(1,689)
Benefit from (provision for) income taxes		(6,051)	(3,862)	4,104
Net (Loss) Income		(9,131)	293,230	(438,883)
Non-cash amortization (expense) income, net		2,507	(20,781)	(1,282)
Other significant non-cash expense: goodwill impairment				0
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income		6,844	4,746	9,136
Interest expense		(56,470)	(40,921)	(47,620)
Net Interest Income		(49,626)	(36,175)	(38,484)
Non-interest (loss) income
Mortgage banking activities, net		0	0	0
Investment fair value changes, net		15,590	(1,565)	(2,004)
Other income, net		(901)	951	2,685
Realized gains, net		2,160	0	25,182
Total non-interest (loss) income, net		16,849	(614)	25,863
General and administrative expenses		(55,749)	(77,066)	(52,900)
Portfolio management costs		0	0	0
Loan acquisition costs		0	(4)	(10)
Other expense				(718)
Other expenses		0	17	(718)
Benefit from (provision for) income taxes		0	19,283	0
Net (Loss) Income		(88,526)	(94,559)	(66,249)
Non-cash amortization (expense) income, net		$ (8,289)	$ (7,878)	(4,954)
Other significant non-cash expense: goodwill impairment				$ 0

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Interest income	$ 707,854	$ 574,926	$ 571,916
Interest expense	(552,400)	(426,749)	(448,005)
Net Interest Income	155,454	148,177	123,911
Investment fair value changes, net	(175,558)	128,049	(588,438)
Other income, net	21,204	12,018	4,188
Realized gains, net	5,334	17,993	30,424
Total non-interest (loss) income, net	(162,679)	393,804	(475,354)
General and administrative expenses	(140,908)	(165,218)	(113,498)
Portfolio Management Costs	(7,951)	(5,758)	(4,204)
Loan acquisition costs	(11,766)	(16,219)	(8,525)
Other expenses	(15,590)	(16,695)	(108,785)
Benefit from (Provision for) income taxes	19,920	(18,478)	4,608
Net (Loss) Income	(163,520)	319,613	(581,847)
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	6,844	4,746	9,136
Interest expense	(56,470)	(40,921)	(47,620)
Net Interest Income	(49,626)	(36,175)	(38,484)
Investment fair value changes, net	15,590	(1,565)	(2,004)
Other income, net	(901)	951	2,685
Realized gains, net	2,160	0	25,182
Total non-interest (loss) income, net	16,849	(614)	25,863
General and administrative expenses	(55,749)	(77,066)	(52,900)
Portfolio Management Costs	0	0	0
Loan acquisition costs	0	(4)	(10)
Other expenses	0	17	(718)
Benefit from (Provision for) income taxes	0	19,283	0
Net (Loss) Income	(88,526)	(94,559)	(66,249)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	5,672	4,709	9,061
Interest expense	(5,206)	(3,040)	(5,945)
Net Interest Income	466	1,669	3,116
Investment fair value changes, net	(1,302)	(1,558)	(1,512)
Other income, net	0	0	0
Realized gains, net	0	0	0
Total non-interest (loss) income, net	(1,302)	(1,558)	(1,512)
General and administrative expenses	0	0	0
Portfolio Management Costs	0	0	0
Loan acquisition costs	0	0	0
Other expenses	0	0	0
Benefit from (Provision for) income taxes	0	0	0
Net (Loss) Income	(836)	111	1,604
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	1,172	37	75
Interest expense	(51,264)	(37,881)	(41,675)
Net Interest Income	(50,092)	(37,844)	(41,600)
Investment fair value changes, net	16,892	(7)	(492)
Other income, net	(901)	951	2,685
Realized gains, net	2,160	0	25,182
Total non-interest (loss) income, net	18,151	944	27,375
General and administrative expenses	(55,749)	(77,066)	(52,900)
Portfolio Management Costs	0	0	0
Loan acquisition costs	0	(4)	(10)
Other expenses	0	17	(718)
Benefit from (Provision for) income taxes	0	19,283	0
Net (Loss) Income	$ (87,690)	$ (94,670)	$ (67,853)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 240,475		$ 377,411
Home equity investments		403,462		192,740
Other investments	[1]	390,938		449,229
Goodwill		23,373	[1]	0	[1]	$ 0
Intangible assets		40,892		41,561
Total Assets	[1]	13,030,899		14,706,944
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,613,188		7,592,432
Business Purpose Loans
Segment Reporting Information [Line Items]
Fair value of loans		5,332,586		4,790,989
Multifamily securities
Segment Reporting Information [Line Items]
Fair value of loans		424,551		473,514
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Real estate securities		0		4,927
Home equity investments		0		0
Other investments		0		0
Goodwill		0
Intangible assets		0		0
Total Assets		660,916		1,716,285
Operating Segments | Residential Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		628,160		1,673,235
Operating Segments | Residential Mortgage Banking | Business Purpose Loans
Segment Reporting Information [Line Items]
Fair value of loans		0		0
Operating Segments | Residential Mortgage Banking | Multifamily securities
Segment Reporting Information [Line Items]
Fair value of loans		0		0
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Real estate securities		0		0
Home equity investments		0		0
Other investments		0		0
Goodwill		23,373
Intangible assets		40,892		41,561
Total Assets		487,159		464,967
Operating Segments | Business Purpose Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		0		0
Operating Segments | Business Purpose Mortgage Banking | Business Purpose Loans
Segment Reporting Information [Line Items]
Fair value of loans		364,073		347,860
Operating Segments | Business Purpose Mortgage Banking | Multifamily securities
Segment Reporting Information [Line Items]
Fair value of loans		0		0
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Real estate securities		240,475		372,484
Home equity investments		403,462		192,740
Other investments		334,420		413,527
Goodwill		0
Intangible assets		0		0
Total Assets		11,303,991		11,770,486
Operating Segments | Investment Portfolio | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		4,800,096		5,688,742
Operating Segments | Investment Portfolio | Business Purpose Loans
Segment Reporting Information [Line Items]
Fair value of loans		4,968,513		4,443,129
Operating Segments | Investment Portfolio | Multifamily securities
Segment Reporting Information [Line Items]
Fair value of loans		424,551		473,514
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0		0
Home equity investments				0
Other investments		56,518		35,702
Goodwill		0
Intangible assets		0		0
Total Assets		578,833		755,206
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		184,932		230,455
Corporate/ Other | Business Purpose Loans
Segment Reporting Information [Line Items]
Fair value of loans		0		0
Corporate/ Other | Multifamily securities
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 December 31, 2022 and 2021, assets of consolidated VIEs totaled $9,257,291 and $10,661,081, respectively. At December 31, 2022 and 2021, liabilities of consolidated VIEs totaled $8,270,276 and $9,619,347, respectively. See Note 4 for further discussion.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Issuance of common stock		$ 67,476	$ 34,708	$ 5,547
Subsequent Event | Series A Preferred Stock
Subsequent Event [Line Items]
Issuance of common stock (in shares)	2,800,000
Preferred stock, dividend rate (as a percent)	10%
Gross proceeds	$ 70,000
Issuance of common stock	$ 67,000
Liquidation preference (in dollars per share)	$ 25
Subsequent Event | Series A Preferred Stock | US Treasury (UST) Interest Rate
Subsequent Event [Line Items]
Basis spread on variable rate (as a percent)	6.278%

Schedule IV - Mortgage Loans _2

Schedule IV - Mortgage Loans On Real Estate (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) tranche	Dec. 31, 2021 USD ($) loan tranche	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 11,370,323,000	$ 11,370,323,000	$ 11,370,323,000	$ 12,856,934,000	$ 8,877,626,000	$ 15,630,117,000
Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	4,832,407,000	4,832,407,000	4,832,407,000
Principal Amount Subject to Delinquent Principal or Interest	224,020,000	224,020,000	$ 224,020,000
Residential loans, held-for-sale, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | tranche			994	2,196
Carrying Amount	780,781,000	780,781,000	$ 780,781,000
Principal Amount Subject to Delinquent Principal or Interest	$ 208,000	208,000	$ 208,000	$ 2,923,000
Residential loans, held-for-sale, at fair value | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans	8		8	57
Carrying Amount	$ 4,130,000	4,130,000	$ 4,130,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	$ 0	$ 0
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.63%
Residential loans, held-for-sale, at fair value | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.50%
Residential loans, held-for-sale, at fair value | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans	986		986	2,139
Carrying Amount	$ 776,651,000	$ 776,651,000	$ 776,651,000
Principal Amount Subject to Delinquent Principal or Interest	208,000	$ 208,000	208,000	$ 2,923,000
Residential loans, held-for-sale, at fair value | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.75%
Residential loans, held-for-sale, at fair value | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		9.25%
Single-family rental loans, held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	358,791,000	$ 358,791,000	358,791,000
Principal Amount Subject to Delinquent Principal or Interest	$ 536,000	536,000	536,000
Single-family rental loans, held-for-sale | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	91
Carrying Amount	$ 358,791,000	358,791,000	358,791,000
Principal Amount Subject to Delinquent Principal or Interest	536,000	$ 536,000	536,000
Single-family rental loans, held-for-sale | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.75%
Single-family rental loans, held-for-sale | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		8.47%
Single family rental loans held for investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	2,944,984,000	$ 2,944,984,000	2,944,984,000
Principal Amount Subject to Delinquent Principal or Interest	39,483,000	39,483,000	39,483,000
Business purpose loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	1,512,427,000	1,512,427,000	1,512,427,000
Principal Amount Subject to Delinquent Principal or Interest	34,264,000	34,264,000	34,264,000
Real estate loans, federal income tax basis	$ 2,030,000,000	2,030,000,000	2,030,000,000
Business purpose loans held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	261
Carrying Amount	$ 99,974,000	99,974,000	99,974,000
Principal Amount Subject to Delinquent Principal or Interest	$ 33,392,000	$ 33,392,000	33,392,000
Business purpose loans held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6%
Business purpose loans held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11.50%
Business purpose loans held-for-investment | Floating ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,340
Carrying Amount	$ 1,412,453,000	$ 1,412,453,000	1,412,453,000
Principal Amount Subject to Delinquent Principal or Interest	872,000	$ 872,000	872,000
Business purpose loans held-for-investment | Floating ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		8.27%
Business purpose loans held-for-investment | Floating ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11.87%
Consolidated Agency multifamily loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	424,552,000	$ 424,552,000	424,552,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0	0	0
Consolidated Agency multifamily loans | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	28
Carrying Amount	$ 424,552,000	424,552,000	424,552,000
Principal Amount Subject to Delinquent Principal or Interest	0	$ 0	0
Consolidated Agency multifamily loans | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.25%
Consolidated Agency multifamily loans | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.25%
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate loans, federal income tax basis	$ 0	$ 0	0
Legacy Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,304			1,583
Principal Amount Subject to Delinquent Principal or Interest	$ 6,824,000	6,824,000	6,824,000	$ 7,482,000
Legacy Sequoia | Residential loans, held-for-investment | ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,297			1,574
Carrying Amount	$ 183,204,000	183,204,000	183,204,000
Principal Amount Subject to Delinquent Principal or Interest	$ 6,824,000	$ 6,824,000	6,824,000	$ 7,482,000
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.25%
Legacy Sequoia | Residential loans, held-for-investment | ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.13%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7			9
Carrying Amount	$ 1,729,000	$ 1,729,000	1,729,000
Principal Amount Subject to Delinquent Principal or Interest	$ 0	$ 0	0	$ 0
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2.88%
Legacy Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		4.63%
Sequoia | Residential loans, held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4,624			4,300
Principal Amount Subject to Delinquent Principal or Interest	$ 7,799,000	$ 7,799,000	7,799,000	$ 15,124,000
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	17			28
Carrying Amount	$ 10,959,000	10,959,000	10,959,000
Principal Amount Subject to Delinquent Principal or Interest	$ 637,000	$ 637,000	637,000	$ 0
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.38%
Sequoia | Residential loans, held-for-investment | Hybrid ARM loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		5.63%
Sequoia | Residential loans, held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4,607			4,272
Carrying Amount	$ 3,179,457,000	$ 3,179,457,000	3,179,457,000
Principal Amount Subject to Delinquent Principal or Interest	7,162,000	$ 7,162,000	7,162,000	$ 15,124,000
Sequoia | Residential loans, held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1.88%
Sequoia | Residential loans, held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.75%
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate loans, federal income tax basis	$ 0	$ 0	0
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	10,882			11,986
Carrying Amount	$ 1,457,058,000	1,457,058,000	1,457,058,000
Principal Amount Subject to Delinquent Principal or Interest	$ 209,397,000	$ 209,397,000	209,397,000	$ 212,961,000
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		2%
Freddie Mac SLST | Residential loans, held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11%
CAFL | Single family rental loans held for investment at fair value | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,131
Carrying Amount	$ 2,944,984,000	$ 2,944,984,000	2,944,984,000
Principal Amount Subject to Delinquent Principal or Interest	39,483,000	$ 39,483,000	39,483,000
CAFL | Single family rental loans held for investment at fair value | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		3.81%
CAFL | Single family rental loans held for investment at fair value | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		7.57%
CAFL | Business purpose loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	516,383,000	$ 516,383,000	516,383,000
Principal Amount Subject to Delinquent Principal or Interest	$ 7,328,000	7,328,000	7,328,000
CAFL | Business purpose loans held-for-investment | Fixed loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	605
Carrying Amount	$ 110,869,000	110,869,000	110,869,000
Principal Amount Subject to Delinquent Principal or Interest	$ 3,953,000	$ 3,953,000	3,953,000
CAFL | Business purpose loans held-for-investment | Fixed loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.30%
CAFL | Business purpose loans held-for-investment | Fixed loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		11.24%
CAFL | Business purpose loans held-for-investment | Floating ARM Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1,270
Carrying Amount	$ 405,514,000	$ 405,514,000	405,514,000
Principal Amount Subject to Delinquent Principal or Interest	$ 3,375,000	$ 3,375,000	$ 3,375,000
CAFL | Business purpose loans held-for-investment | Floating ARM Loans | Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		6.12%
CAFL | Business purpose loans held-for-investment | Floating ARM Loans | Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		12.62%

Schedule IV - Mortgage Loans _3

Schedule IV - Mortgage Loans On Real Estate - Rollforward of mortgage loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at beginning of period	$ 12,856,934	$ 8,877,626	$ 15,630,117
Additions during period:
Originations/acquisitions	6,589,943	15,427,382	5,914,728
Deductions during period:
Sales	(4,325,790)	(8,660,440)	(6,398,690)
Principal repayments	(2,199,109)	(2,675,859)	(2,313,143)
Transfers to REO	(8,495)	(40,038)	(14,104)
Deconsolidation adjustments	0	0	(3,849,779)
Changes in fair value, net	(1,543,160)	(71,737)	(91,503)
Balance at end of period	$ 11,370,323	$ 12,856,934	$ 8,877,626