Redwood Trust (RWT) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-13759
Entity Registrant Name	REDWOOD TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	68-0329422
Entity Address Address Line One	One Belvedere Place,
Entity Address, Address Line Two	Suite 300
Entity Address City Or Town	Mill Valley,
Entity Address, State or Province	CA
Entity Address Postal Zip Code	94941
City Area Code	415
Local Phone Number	389-7373
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity small business	false
Emerging growth company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		114,028,712
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31
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

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
ASSETS
Real estate securities, at fair value	[1]	$ 243,346	$ 240,475
Home equity investments, at fair value	[1]	416,783	403,462
Other investments	[1]	381,690	390,938
Cash and cash equivalents	[1]	404,449	258,894
Restricted cash	[1]	86,037	70,470
Goodwill	[1]	23,373	23,373
Intangible assets	[1]	37,784	40,892
Derivative assets	[1]	11,497	20,830
Other assets	[1]	232,221	211,240
Total Assets	[1]	13,121,286	13,030,899
Liabilities
Short-term debt, net	[1]	1,616,452	2,029,679
Derivative liabilities	[1]	10,736	16,855
Accrued expenses and other liabilities	[1]	176,271	180,203
Asset-backed securities issued (includes $7,968,135 and $7,424,132 at fair value), net	[1]	8,447,119	7,986,752
Long-term debt, net	[1]	1,733,028	1,733,425
Total liabilities	[1]	11,983,606	11,946,914
Commitments and Contingencies (see Note 17)	[1]
Equity
Preferred stock, par value $0.01 per share, 2,800,000 shares authorized; 2,800,000 and zero issued and outstanding	[1]	66,923	0
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 113,864,456 and 113,484,675 issued and outstanding	[1]	1,139	1,135
Additional paid-in capital	[1]	2,355,139	2,349,845
Accumulated other comprehensive loss	[1]	(63,036)	(68,868)
Cumulative earnings	[1]	1,156,571	1,153,370
Cumulative distributions to stockholders	[1]	(2,379,056)	(2,351,497)
Total equity	[1]	1,137,680	1,083,985
Total Liabilities and Equity	[1]	13,121,286	13,030,899
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	26,975	780,781
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	5,465,883	4,832,407
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	371,385	364,073
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,993,264	4,968,513
Consolidated Agency multifamily loans, at fair value
ASSETS
Fair value of loans	[1]	$ 426,599	$ 424,551
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
ABS issued, net, At fair value		$ 7,968,135	$ 7,424,132
Preferred stock, par value (usd per share)		$ 0.01	$ 0.01
Preferred stock, authorized (in shares)		2,800,000	2,800,000
Preferred stock, issued (in shares)		2,800,000	0
Preferred stock, outstanding (in shares)		2,800,000	0
Common stock, par value (usd per share)		$ 0.01	$ 0.01
Common stock, authorized (in shares)		395,000,000	395,000,000
Common stock, issued (in shares)		113,864,456	113,484,675
Common stock, outstanding (in shares)		113,864,456	113,484,675
Assets	[1]	$ 13,121,286	$ 13,030,899
Liabilities	[1]	11,983,606	11,946,914
Variable Interest Entity, Primary Beneficiary
Assets		9,836,956	9,257,291
Liabilities		$ 8,729,585	$ 8,270,276
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest Income
Residential loans	$ 57,874	$ 65,203
Business purpose loans	97,296	94,299
Consolidated Agency multifamily loans	4,618	4,753
Real estate securities	6,428	15,955
Other interest income	12,300	9,190
Total interest income	178,516	189,400
Interest Expense
Short-term debt	(31,828)	(11,488)
Asset-backed securities issued	(87,465)	(105,695)
Long-term debt	(32,786)	(19,115)
Total interest expense	(152,079)	(136,298)
Net Interest Income	26,437	53,102
Non-interest Income
Mortgage banking activities, net	16,671	16,315
Investment fair value changes, net	(127)	(6,120)
Other income, net	4,556	5,983
Realized gains (losses), net	(2)	2,581
Total non-interest income, net	21,098	18,759
General and administrative expenses	(35,555)	(33,276)
Portfolio management costs	(3,510)	(1,578)
Loan acquisition costs	(1,289)	(4,465)
Other expenses	(3,684)	(4,085)
Net Income before Benefit from Income Taxes	3,497	28,457
Benefit from income taxes	1,123	2,458
Net Income	4,620	30,915
Dividends on preferred stock	(1,419)	0
Net income available to common stockholders	$ 3,201	$ 30,915
Net income available to common stockholders - Basic (in dollars per share)	$ 0.02	$ 0.25
Net income available to common stockholders - Diluted (in dollars per share)	$ 0.02	$ 0.24
Basic weighted average common shares outstanding (in shares)	113,678,911	119,884,172
Diluted weighted average common shares outstanding (in shares)	114,134,556	140,506,157

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net Income	$ 4,620	$ 30,915
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	5,007	(17,873)
Reclassification of unrealized (gain) on available-for-sale securities to net income	(193)	(692)
Reclassification of unrealized loss on interest rate agreements to net income	1,018	1,018
Total other comprehensive income (loss)	5,832	(17,547)
Comprehensive Income	10,452	13,368
Dividends on preferred stock	(1,419)	0
Comprehensive income available to common stockholders	$ 9,033	$ 13,368

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Beginning balance (in shares) at Dec. 31, 2021				114,892,309
Balance at beginning of period at Dec. 31, 2021		$ 1,386,087	$ 0	$ 1,149	$ 2,316,799	$ (8,927)	$ 1,316,890	$ (2,239,824)
Increase (Decrease) in Stockholders' Equity
Net Income		30,915					30,915
Other comprehensive income (loss)		(17,547)				(17,547)
Employee stock purchase and incentive plans (in shares)				164,065
Employee stock purchase and incentive plans		(1,046)		$ 2	(1,048)
Issuance of stock (in shares)				5,232,869
Issuance of stock		67,475		$ 52	67,423
Non-cash equity award compensation		8,170			8,170
Common dividends declared	[1]	(28,788)						(28,788)
Ending balance (in shares) at Mar. 31, 2022				120,289,243
Balance at End of Period at Mar. 31, 2022		1,445,266	0	$ 1,203	2,391,344	(26,474)	1,347,805	(2,268,612)
Beginning balance (in shares) at Dec. 31, 2022				113,484,675
Balance at beginning of period at Dec. 31, 2022		1,083,985	0	$ 1,135	2,349,845	(68,868)	1,153,370	(2,351,497)
Increase (Decrease) in Stockholders' Equity
Net Income		4,620					4,620
Other comprehensive income (loss)		5,832				5,832
Employee stock purchase and incentive plans (in shares)				379,781
Employee stock purchase and incentive plans		(1,044)		$ 4	(1,048)
Issuance of stock		66,923	66,923
Non-cash equity award compensation		6,342			6,342
Preferred dividends declared ($0.60417 per share)		(1,419)					(1,419)
Common dividends declared	[1]	(27,559)						(27,559)
Ending balance (in shares) at Mar. 31, 2023				113,864,456
Balance at End of Period at Mar. 31, 2023		$ 1,137,680	$ 66,923	$ 1,139	$ 2,355,139	$ (63,036)	$ 1,156,571	$ (2,379,056)
[1]Includes dividends and dividend equivalents declared on common stock and stock-based awards

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Preferred stock dividends declared (in dollars per share)	$ 0.60417
Common dividends declared (in dollars per share)	$ 0.23	$ 0.23

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Cash Flows From Operating Activities:
Net Income		$ 4,620	$ 30,915
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of premiums, discounts, and debt issuance costs, net		5,818	(5,451)
Depreciation and amortization of non-financial assets		3,668	3,969
Originations of held-for-sale loans		(201,081)	(443,289)
Purchases of held-for-sale loans		(55,824)	(2,197,570)
Proceeds from sales of held-for-sale loans		368,633	2,176,422
Principal payments on held-for-sale loans		18,705	46,511
Net settlements of derivatives		(13,933)	67,200
Non-cash equity award compensation expense		6,342	8,170
Market valuation adjustments		(11,270)	1,859
Realized (gains) losses, net		2	(2,581)
Net change in:
Accrued interest receivable and other assets		(13,750)	31,070
Accrued interest payable and accrued expenses and other liabilities		(9,921)	(8,901)
Net cash provided by (used in) operating activities		102,009	(291,676)
Cash Flows From Investing Activities:
Originations of loan investments		(237,309)	(411,938)
Purchases of loan investments		0	(2,983)
Principal payments on loan investments		343,430	660,990
Purchases of real estate securities		0	(15,006)
Proceeds from sales of real estate securities		6,186	0
Principal payments on real estate securities		255	23,050
Repayments from servicer advance investments, net		7,529	45,005
Purchases of HEIs		(16,559)	(40,141)
Repayments on HEIs		7,754	12,671
Other investing activities, net		(557)	(1,151)
Net cash provided by investing activities		110,729	270,497
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		643,085	2,153,516
Repayments on short-term debt		(1,057,380)	(2,684,078)
Proceeds from issuance of asset-backed securities		594,327	680,749
Repayments on asset-backed securities issued		(267,449)	(535,568)
Proceeds from borrowings on long-term debt		126,760	630,865
Deferred long-term debt issuance costs paid		(308)	(532)
Repayments on long-term debt		(128,970)	(308,578)
Taxes paid on equity award distributions		(1,207)	(1,202)
Net proceeds from issuance of common stock		162	67,632
Net proceeds from issuance of preferred stock		66,923	0
Dividends paid on common stock		(27,559)	(28,788)
Other financing activities, net		0	(1,500)
Net cash used in financing activities		(51,616)	(27,484)
Net increase (decrease) in cash, cash equivalents and restricted cash		161,122	(48,663)
Cash, cash equivalents and restricted cash at beginning of period	[1]	329,364	531,484
Cash, cash equivalents, and restricted cash at end of period	[1]	490,486	482,821
Cash paid during the period for:
Interest		138,617	131,419
Taxes (refunded) paid		(1,388)	(41)
Supplemental Noncash Information:
Dividends declared but not paid on preferred stock		1,419	0
Retention of mortgage servicing rights from loan securitizations and sales		0	4,543
Transfers from loans held-for-sale to loans held-for-investment		873,093	1,098,459
Transfers from residential loans to real estate owned		8,014	1,319
Operating lease right-of-use assets obtained in exchange for operating lease liabilities		337	0
Reduction in operating lease liabilities due to lease modification		$ 274	$ 0
[1]Cash, cash equivalents, and restricted cash includes cash and cash equivalents of $404 million and restricted cash of $86 million at March 31, 2023, and includes cash and cash equivalents of $259 million and restricted cash of $70 million at December 31, 2022.

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Statement of Cash Flows [Abstract]
Cash and cash equivalents	[1]	$ 404,449	$ 258,894
Restricted cash		$ 86,000
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Organization

Organization	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit, 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 portfolio. 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. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires. For a full description of our business, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2022.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at March 31, 2023 and December 31, 2022, and for the three months ended March 31, 2023 and 2022. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at March 31, 2023 and results of operations for all periods presented. The results of operations for the three months ended March 31, 2023 should not be construed as indicative of the results to be expected for the full year. Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities issued prior to 2012 ("Legacy Sequoia"), certain entities formed during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest 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, 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 On July 1, 2022, we acquired Riverbend Funding LLC ("Riverbend"), a private mortgage lender for residential transitional and commercial real estate investors. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding this acquisition, including purchase price allocations. Additionally, in 2019 we acquired 5 Arches and CoreVest, an originator and portfolio manager of business purpose residential loans. In connection with these acquisitions, we identified and recorded finite-lived intangible assets totaling $95 million. The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at March 31, 2023. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at March 31, 2023 Carrying Value at March 31, 2023 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (23,559) $ 32,741 7 Broker network 18,100 (14,782) 3,318 5 Non-compete agreements 11,400 (9,975) 1,425 3 Tradenames 4,400 (4,100) 300 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (56,816) $ 37,784 6 All of our intangible assets are amortized on a straight-line basis. For the three months ended March 31, 2023, we recorded intangible asset amortization expense of $3 million. For the three months ended March 31, 2022, we recorded intangible asset amortization expense of $4 million. Estimated future amortization expense is summarized in the table below. Table 2.2 – Intangible Asset Amortization Expense by Year (In Thousands) March 31, 2023 2023 (9 months) $ 9,323 2024 9,412 2025 8,426 2026 6,694 2027 1,571 2028 and thereafter 2,358 Total Future Intangible Asset Amortization $ 37,784 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 March 31, 2023. We recorded total goodwill of $23 million during the three months ended September 30, 2022 as a result of the total consideration exceeding the fair value of the net assets acquired from Riverbend. For reporting purposes, we included the intangible assets and goodwill from the Riverbend acquisition within our Business Purpose Mortgage Banking segment. There were no changes to the balance of goodwill during the three months ended March 31, 2023. 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 March 31, 2023, 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. During the period ended March 31, 2023, 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 income, and Net income of Redwood, as if the acquisition of Riverbend occurred as of January 1, 2022. 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, 2022 and should not be taken as indicative of our future consolidated results of operations. Table 2.3 – Unaudited Pro Forma Financial Information Three Months Ended March 31, 2022 (In Thousands) Supplementary pro forma information: Net interest income $ 54,815 Non-interest income 22,401 Net income 32,230

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Included in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2022 is a summary of our significant accounting policies. Recent Accounting Pronouncements Newly Adopted Accounting Standard Updates ("ASUs") 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 new guidance was effective for fiscal years beginning after December 31, 2022. We adopted this guidance in the first quarter of 2023, which did not 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 new guidance was effective for fiscal years beginning after December 31, 2022. We adopted this guidance in the first quarter of 2023, which did not have a material impact on our consolidated financial statements. 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. Through March 31, 2023, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. 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 (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. 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 March 31, 2023, our primary LIBOR exposure included the following: $742 million of bridge loans and $140 million of trust preferred securities and subordinated debt. In 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. 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. The following table 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 8,032 $ — $ 8,032 $ — $ (1,596) $ 6,436 TBAs 3,037 — 3,037 (1,397) — 1,640 Futures 75 — 75 (75) — — Total Assets $ 11,144 $ — $ 11,144 $ (1,472) $ (1,596) $ 8,076 Liabilities (2) TBAs $ (3,018) $ — $ (3,018) $ 1,397 $ 1,277 $ (344) Futures (7,712) — (7,712) 75 7,637 — Loan warehouse debt (938) — (938) 631 — (307) Total Liabilities $ (11,668) $ — $ (11,668) $ 2,103 $ 8,914 $ (651) 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) 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) (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. (2) Interest rate agreements, TBAs and futures are components of derivative instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by certain residential and business purpose loans, is a component of Short-term debt and Long-term debt on our consolidated balance sheets.

Principles of Consolidation

Principles of Consolidation	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023, 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 March 31, 2023, we held an 80% ownership interest in, and were responsible for the management of, each such 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 an 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 March 31, 2023 and December 31, 2022, 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. 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. During the three months ending March 31, 2023, we called the Freddie Mac SLST re-securitization and paid off the associated outstanding ABS. The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs March 31, 2023 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 170,000 $ 3,831,538 $ — $ 1,464,345 $ — $ — $ — $ 5,465,883 Business purpose loans, held-for-investment — — 3,376,654 — — — — 3,376,654 Consolidated Agency multifamily loans — — — — 426,599 — — 426,599 Home equity investments — — — — — — 129,317 129,317 Other investments — — — — — 292,636 — 292,636 Cash and cash equivalents — — — — — 20,087 — 20,087 Restricted cash 61 70 51,428 — — — 4,716 56,275 Accrued interest receivable 324 15,096 18,009 5,069 1,288 160 — 39,946 Other assets 18 — 19,199 2,642 — 7,650 50 29,559 Total Assets $ 170,403 $ 3,846,704 $ 3,465,290 $ 1,472,056 $ 427,887 $ 320,533 $ 134,083 $ 9,836,956 Short-term debt $ — $ — $ — $ — $ — $ 197,883 $ — $ 197,883 Accrued interest payable 316 11,259 10,816 3,510 1,162 492 — 27,555 Accrued expenses and other liabilities (106) 78 4,222 — — 29,737 23,097 57,028 Asset-backed securities issued 168,832 3,570,597 3,072,176 1,143,522 394,469 — 97,523 8,447,119 Total Liabilities $ 169,042 $ 3,581,934 $ 3,087,214 $ 1,147,032 $ 395,631 $ 228,112 $ 120,620 $ 8,729,585 Value of our investments in VIEs (1) $ 1,186 $ 260,933 $ 376,042 $ 323,465 $ 32,130 $ 92,421 $ 13,463 $ 1,099,640 Number of VIEs 20 19 19 2 1 3 1 65 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 (1) Value of our investments in VIEs, as presented in this table, represents the fair value of our economic interests in the consolidated VIEs that 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 March 31, 2023 and December 31, 2022, the fair value of our interests in the CAFL Term securitizations were $295 million and $304 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. At December 31, 2022, Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a re-securitization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. During the three months ended March 31, 2023, we called the Freddie Mac SLST re-securitization and paid off the associated outstanding ABS issued. As of March 31, 2023 and December 31, 2022, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election was $323 million and $323 million, respectively, with the difference reflected in the December 31, 2022 table above due to ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the three months ended March 31, 2023 and 2022. Table 4.2 – Income (Loss) from Consolidated VIEs Three Months Ended March 31, 2023 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 2,543 $ 34,644 $ 54,437 $ 15,493 $ 4,618 $ 7,814 $ — $ 119,549 Interest expense (2,504) (30,055) (39,542) (11,218) (4,241) (3,848) — (91,408) Net interest income 39 4,589 14,895 4,275 377 3,966 — 28,141 Non-interest income Investment fair value changes, net (94) 2,442 (9,682) 8,934 363 (1,047) 425 1,341 Other income — — 172 — — — — 172 Total non-interest income, net (94) 2,442 (9,510) 8,934 363 (1,047) 425 1,513 General and administrative expenses — — — — — 10 — 10 Other expenses — — — — — (577) — (577) Income (loss) from Consolidated VIEs $ (55) $ 7,031 $ 5,385 $ 13,209 $ 740 $ 2,352 $ 425 $ 29,087 Three Months Ended March 31, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,012 $ 32,098 $ 77,334 $ 17,200 $ 4,753 $ 7,919 $ — $ 140,316 Interest expense (701) (28,171) (58,480) (14,085) (4,371) (1,662) — (107,470) Net interest income 311 3,927 18,854 3,115 382 6,257 — 32,846 Non-interest income Investment fair value changes, net (714) (3,822) 2,664 3,036 264 (3,468) 3,411 1,371 Other income — — 90 — — — — 90 Total non-interest income, net (714) (3,822) 2,754 3,036 264 (3,468) 3,411 1,461 General and administrative expenses — — — — — (31) — (31) Other expenses — — — — — (551) — (551) Income (loss) from Consolidated VIEs $ (403) $ 105 $ 21,608 $ 6,151 $ 646 $ 2,207 $ 3,411 $ 33,725 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 March 31, 2023, 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. The following table summarizes the cash flows during the three months ended March 31, 2023 and 2022 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2023 2022 MSR fees received $ 684 $ 864 Funding of compensating interest, net (1) (16) Cash flows received on retained securities 2,963 14,126 The following table presents additional information at March 31, 2023 and December 31, 2022, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.4 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2023 December 31, 2022 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 31,208 $ 28,722 Subordinate securities, classified as AFS 77,714 74,367 Mortgage servicing rights 11,160 11,589 Maximum loss exposure (1) $ 120,082 $ 114,678 Assets transferred: Principal balance of loans outstanding $ 3,991,357 $ 4,052,922 Principal balance of loans 30+ days delinquent 21,906 27,739 (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 March 31, 2023 and December 31, 2022. Table 4.5 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2023 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2023 $ 11,160 $ 31,208 $ 77,714 Expected life (in years) (2) 7 7 15 Prepayment speed assumption (annual CPR) (2) 8 % 8 % 8 % Decrease in fair value from: 10% adverse change $ 350 $ 1,190 $ 425 25% adverse change 801 2,908 999 Discount rate assumption (2) 11 % 12 % 8 % Decrease in fair value from: 100 basis point increase $ 412 $ 1,120 $ 7,553 200 basis point increase 798 2,162 14,065 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A N/A $ 34 25% higher losses N/A N/A 83 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 (1) Senior securities included $31 million and $29 million of interest-only securities at March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, grouped by asset type. Table 4.6 – Third-Party Sponsored VIE Summary (In Thousands) March 31, 2023 December 31, 2022 Mortgage-Backed Securities Senior $ 89 $ 145 Subordinate 134,335 137,241 Total Mortgage-Backed Securities 134,424 137,386 Excess MSR 6,548 7,082 Total Investments in Third-Party Sponsored VIEs $ 140,972 $ 144,468 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	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale, at fair value $ 26,975 $ 26,975 $ 780,781 $ 780,781 Residential loans, held-for-investment, at fair value 5,465,883 5,465,883 4,832,407 4,832,407 Business purpose loans, held-for-sale, at fair value 371,385 371,385 364,073 364,073 Business purpose loans, held-for-investment, at fair value 4,993,264 4,993,264 4,968,513 4,968,513 Consolidated Agency multifamily loans, at fair value 426,599 426,599 424,551 424,551 Real estate securities, at fair value 243,346 243,346 240,475 240,475 HEIs 416,783 416,783 403,462 403,462 Servicer advance investments (1) 260,378 260,378 269,259 269,259 MSRs (1) 24,831 24,831 25,421 25,421 Excess MSRs (1) 38,807 38,807 39,035 39,035 Other investments (1) 5,727 5,727 6,155 6,155 Cash and cash equivalents 404,449 404,449 258,894 258,894 Restricted cash 86,037 86,037 70,470 70,470 Derivative assets 11,497 11,497 20,830 20,830 REO (2) 13,095 3,378 6,455 4,185 Margin receivable (2) 17,079 17,079 13,802 13,802 Liabilities Short-term debt (3) $ 1,472,968 $ 1,472,968 $ 1,853,664 $ 1,853,664 Margin payable (4) 2,558 2,558 5,944 5,944 Guarantee obligations (4) 6,223 4,612 6,344 4,738 HEI securitization non-controlling interest 23,097 23,097 22,329 22,329 Derivative liabilities 10,736 10,736 16,855 16,855 ABS issued, net at fair value 7,968,135 7,968,135 7,424,132 7,424,132 at amortized cost 478,984 452,263 562,620 524,768 Other long-term debt, net (5) 1,076,099 1,022,015 1,077,200 1,069,946 Convertible notes, net (5) 661,634 620,465 693,473 638,049 Trust preferred securities and subordinated notes, net (5) 138,779 87,885 138,767 83,700 (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 three months ended March 31, 2023 and 2022, we elected the fair value option for $2 million and $5 million of securities, respectively, $53 million and $2.12 billion (principal balance) of residential loans, respectively, and $442 million and $920 million (principal balance) of business purpose loans, respectively. Additionally, during the three months ended March 31, 2023 and 2022, we elected the fair value option for $17 million and $40 million of HEIs, respectively, and $0 and $6 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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,492,828 $ — $ — $ 5,492,828 Business purpose loans 5,364,649 — — 5,364,649 Consolidated Agency multifamily loans 426,599 — — 426,599 Real estate securities 243,346 — — 243,346 HEIs 416,783 — — 416,783 Servicer advance investments 260,378 — — 260,378 MSRs 24,831 — — 24,831 Excess MSRs 38,807 — — 38,807 Other investments 5,727 — — 5,727 Derivative assets 11,497 3,112 8,032 353 Liabilities HEI securitization non-controlling interest $ 23,097 $ — $ — $ 23,097 Derivative liabilities 10,736 10,730 — 6 ABS issued 7,968,135 — — 7,968,135 December 31, 2022 Carrying 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 HEIs 403,462 — — 403,462 Servicer advance investments 269,259 — — 269,259 MSRs 25,421 — — 25,421 Excess MSRs 39,035 — — 39,035 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 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2023. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Consolidated Agency Multifamily Loans Trading Securities AFS HEIs Servicer Advance Investments Excess MSRs MSRs and Other Investments (In Thousands) Beginning balance - $ 5,613,157 $ 5,332,586 $ 424,552 $ 108,329 $ 132,146 $ 403,462 $ 269,259 $ 39,035 $ 31,576 Acquisitions 51,816 — — 1,700 — 16,559 — — — Originations — 438,390 — — — — — — — Sales (163,695) (205,135) — (3,509) (2,150) — — — (272) Principal paydowns (111,710) (248,311) (2,113) (115) (139) (7,754) (7,529) — (70) Gains (losses) in net income, net 103,660 52,015 4,160 1,961 263 4,516 (1,352) (228) (676) Unrealized losses in OCI, net — — — — 4,860 — — — — Other settlements, net (1) (400) (4,896) — — — — — — — Ending balance - $ 5,492,828 $ 5,364,649 $ 426,599 $ 108,366 $ 134,980 $ 416,783 $ 260,378 $ 38,807 $ 30,558 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2022 $ 322 $ 22,329 $ 7,424,132 Acquisitions — — 594,327 Principal paydowns — — (181,696) Gains (losses) in net income, net 88 768 131,372 Other settlements, net (1) (57) — — Ending balance - March 31. 2023 $ 353 $ 23,097 $ 7,968,135 (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 that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at March 31, 2023 and 2022. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2023 and 2022 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 March 31, 2023 and 2022 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2023 2022 Assets Residential loans at Redwood $ 156 $ (35,397) Business purpose loans 12,239 (14,647) Net investments in consolidated Sequoia entities (1) 2,349 (4,981) Net investments in consolidated Freddie Mac SLST entities (1) 8,759 2,940 Net investments in consolidated Freddie Mac K-Series entities (1) 363 264 Net investments in consolidated CAFL Term entities (1) (8,810) 4,048 Net investment in consolidated HEI securitization entity (1) 1,194 9,628 Trading securities 1,793 (1,401) Available-for-sale securities (28) — HEIs at Redwood 3,433 1,185 Servicer advance investments (1,352) (3,081) MSRs (424) 3,526 Excess MSRs (229) (1,208) Loan purchase and interest rate lock commitments 353 2,050 Other investments (94) — Liabilities Non-controlling interest in consolidated HEI entity $ — $ (6,218) Loan purchase commitments (6) (14,442) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at March 31, 2023 and 2022, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election, excluding REO. The following table presents information on assets recorded at fair value on a non-recurring basis at March 31, 2023. 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 March 31, 2023. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2023 Gain (Loss) for March 31, 2023 Carrying Fair Value Measurements Using Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2023 Assets REO $ 2,820 $ — $ — $ 2,820 $ (183) The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2023 2022 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 6,994 $ (27,199) Residential loan purchase commitments (239) (41,623) BPL term loans held-for-sale, at fair value 12,666 (24,468) BPL term loan interest rate lock commitments — (725) BPL bridge loans 1,153 2,135 Trading securities (1) — 2,786 Risk management derivatives, net (8,467) 90,387 Total mortgage banking activities, net (2) $ 12,107 $ 1,293 Investment Fair Value Changes, Net Residential loans held-for-investment, at Redwood (called Sequoia loans) $ 183 $ (4,252) Business Purpose loans held-for-investment 1,376 (2,143) Trading securities 1,961 (4,242) Servicer advance investments (1,352) (3,081) Excess MSRs (228) (1,208) Net investments in Legacy Sequoia entities (3) (94) (714) Net investments in Sequoia entities (3) 2,442 (3,822) Net investments in Freddie Mac SLST entities (3) 8,934 3,036 Net investment in Freddie Mac K-Series entity (3) 363 264 Net investments in CAFL Term entities (3) (8,810) 4,048 Net investments in HEI securitization entities (3) 425 3,411 HEIs at Redwood 3,840 1,192 Other investments (435) 123 Risk management derivatives, net (8,704) 1,973 Credit losses on AFS securities, net (28) (705) Total investment fair value changes, net $ (127) $ (6,120) Other Income MSRs $ (590) $ 2,968 Other (120) — Total other income (4) $ (710) $ 2,968 Total Market Valuation Gains (Losses), Net $ 11,270 $ (1,859) (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 in come, 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 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. At March 31, 2023, our valuation policy and processes had not changed from those described in our Annual Report on Form 10-K for the year ended December 31, 2022. 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 March 31, 2023 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 $ 26,975 Whole loan spread to swap rate 112 - 112 bps 112 bps Seasoned whole loan dollar price $ 91 $ 91 $ 91 Loans held by Legacy Sequoia (2) 170,000 Liability price N/A N/A Loans held by Sequoia (2) 3,831,538 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,464,345 Liability price N/A N/A Business purpose loans: BPL term loans 354,166 Senior credit spread (3) 180 - 180 bps 180 bps Subordinate credit spread (3) 240 - 600 bps 337 bps Senior credit support (3) 36 - 36 % 36 % IO discount rate (3) 7 - 13 % 10 % Prepayment rate (annual CPR) (3) 3 - 3 % 3 % Whole loan spread to treasury rate 325 - 550 bps 441 bps BPL term loans held by CAFL (2) 2,891,043 Liability price N/A N/A BPL bridge loans 2,119,440 Whole loan discount rate 5 - 15 % 10 % Senior credit spread (3) 280 - 280 bps 280 bps Subordinate credit spread (3) 335 - 1,150 bps 654 bps Senior credit support (3) 43 - 43 % 43 % Multifamily loans held by Freddie Mac K-Series (2) 426,599 Liability price N/A N/A Trading and AFS securities 243,346 Discount rate 5 - 18 % 10 % Prepayment rate (annual CPR) 5 - 65 % 9 % Default rate — - 12 % 0.5 % Loss severity — - 50 % 25 % CRT dollar price $ 64 - $ 96 $ 87 HEIs 287,466 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (depreciation) (7) - 4 % 3 % HEIs held by HEI securitization entity 129,317 Discount Rate N/A N/A Servicer advance investments 260,378 Discount rate 2 - 4 % 3 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (4) 5 - 6 yrs 5 yrs Mortgage servicing income — - 18 bps 3 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) March 31, 2023 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) MSRs $ 24,831 Discount rate 11 - 53 % 11 % Prepayment rate (annual CPR) 4 - 27 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Excess MSRs 38,807 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 17 % Excess mortgage servicing amount 8 - 19 bps 11 bps Residential loan purchase commitments, net 359 Whole loan spread to swap rate 112 - 137 bps 125 bps Pull-through rate 36 - 100 % 69 % Committed sales price $ 99 - $ 103 $ 101 Liabilities ABS issued (2) : At consolidated Sequoia entities 3,739,429 Discount rate 4 - 18 % 6 % Prepayment rate (annual CPR) 5 - 59 % 8 % Default rate — - 13 % 1 % Loss severity 25 - 50 % 29 % At consolidated CAFL Term entities 2,593,192 Discount rate — - 17 % 6 % Prepayment rate (annual CPR) — - 3 % 0.1 % Default rate 5 - 16 % 8 % Loss severity 30 - 40 % 31 % At consolidated Freddie Mac SLST entities 1,143,522 Discount rate 5 - 16 % 5 % 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) 394,469 Discount rate 3 - 10 % 5 % At consolidated HEI entities 97,523 Discount rate 10 - 14 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (depreciation) (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 March 31, 2023, the fair value of securities we owned at the consolidated Sequoia, CAFL SFR, Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $261 million, $295 million, $323 million, $32 million, and $13 million, respectively. (3) Values represent pricing inputs used in securitization pricing model. Credit spreads generally represent spreads to applicable swap rates. (4) 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 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 in isolation — such as anticipated credit losses, prepayment rates, interest rates, or other valuation assumptions — would likely result in a significantly lower or higher fair value measurement. Included in Note 5 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2022 is a more detailed description of our financial instruments measured at fair value and their significant inputs, as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy. Certain of our Other investments (inclusive of strategic investments in early-stage companies) are Level 3 financial instruments that we account for under the fair value option. These investments generally take the form of equity or debt with conversion features and do not have readily determinable fair values. We initially record these investments at cost and adjust their fair value based on observable price changes, such as follow-on capital raises or secondary sales, and will also evaluate impacts to valuation from changing market conditions and underlying business performance. As of March 31, 2023, the carrying value of these investments was $6 million.

Residential Loans

Residential Loans	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2023 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 26,975 $ — $ — $ — $ 26,975 Held-for-investment at fair value — 170,000 3,831,538 1,464,345 5,465,883 Total Residential Loans $ 26,975 $ 170,000 $ 3,831,538 $ 1,464,345 $ 5,492,858 December 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia 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 At March 31, 2023, we owned mortgage servicing rights associated with $22 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 The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2023 and December 31, 2022. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 39 994 Unpaid principal balance $ 27,935 $ 822,063 Fair value of loans $ 26,975 $ 780,781 Market value of loans pledged as collateral under short-term borrowing agreements $ 26,282 $ 775,545 Weighted average coupon 6.24 % 5.12 % Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 650 $ 208 Fair value of loans with 90+ day delinquencies $ 576 $ 170 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2023 and 2022. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2023 2022 Principal balance of loans acquired (1) $ 53,046 $ 2,115,191 Principal balance of loans sold 173,153 1,827,364 Principal balance of loans transferred to HFI 657,295 687,192 Net market valuation gains (losses) recorded (2) 7,178 (31,451) (1) For the three months ended March 31, 2023 and 2022, includes zero and $102 million, respectively, of loans acquired through calls of zero and three, respectively, seasoned Sequoia securitizations. (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. Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2023 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,222 5,287 10,748 Unpaid principal balance $ 189,757 $ 4,449,021 $ 1,695,479 Fair value of loans (2) $ 170,000 $ 3,831,538 $ 1,464,345 Weighted average coupon 5.57 % 3.56 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 26 7 1,033 Unpaid principal balance of loans with 90+ day delinquencies $ 5,856 $ 5,147 $ 174,559 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 3 418 Unpaid principal balance of loans in foreclosure $ 2,336 $ 2,308 $ 74,676 December 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia 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 (1) For loans held at consolidated entities, the number of loans 90-or-more 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. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2023 and 2022. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 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 $ 657,295 N/A N/A $ 684,491 N/A Net market valuation gains (losses) recorded (463) 61,867 32,437 6,325 (270,731) (43,768) (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 loan REO activity for the three months ended March 31, 2023. We originate and invest in business purpose loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2023 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 354,166 — $ 17,219 $ — $ 371,385 Held-for-investment at fair value — 2,891,043 1,616,610 485,611 4,993,264 Total Business Purpose Loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 $ 5,364,649 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 Nearly all of the outstanding BPL term loans at March 31, 2023 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% (based on unpaid principal balance) having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at March 31, 2023 were first-lien, interest-only loans with original maturities of six At March 31, 2023, we had $811 million in commitments to fund BPL bridge loans. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2023 and 2022. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three 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 $ 174,078 $ 255,152 $ 442,727 $ 411,938 Principal balance of loans acquired 3,815 9,085 61,892 2,983 Principal balance of loans sold to third parties 217,702 12,547 331,502 — Fair value of loans transferred (1) — 80,792 — 82,291 Mortgage banking activities income (loss) recorded (2) 12,666 1,162 (24,468) 2,375 Investment fair value changes recorded (3) — 1,609 — (759) (1) 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. (2) Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio and, for bridge loans, when transferred into a securitization. See Table 20.1 for additional detail on Mortgage banking activities income (loss). (3) 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 loans 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. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the CFE guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2023 and 2022. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ 37,179 $ (592) $ (191,903) $ (1,384) REO See Note 13 for detail on business purpose loan REO activity for the three months ended March 31, 2023. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2023 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 94 1,094 1,473 1,796 Unpaid principal balance $ 349,190 $ 3,172,026 $ 1,636,460 $ 484,124 Fair value of loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 Weighted average coupon 6.98 % 5.21 % 10.20 % 10.41 % Weighted average remaining loan term (years) 9 5 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 345,080 N/A $ 675,971 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 922,296 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 2 19 53 51 Unpaid principal balance of loans with 90+ day delinquencies $ 1,566 $ 60,740 $ 32,526 $ 11,416 Fair value of loans with 90+ day delinquencies (3) $ 1,157 N/A $ 28,387 $ 11,416 Number of loans in foreclosure 1 8 52 49 Unpaid principal balance of loans in foreclosure $ 536 $ 9,378 $ 31,446 $ 7,628 Fair value of loans in foreclosure (3) $ 536 N/A $ 27,308 $ 7,628 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 (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 CFEs. (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. 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 March 31, 2023 and December 31, 2022. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 28 28 Unpaid principal balance $ 445,080 $ 447,193 Fair value of loans $ 426,599 $ 424,551 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 2 3 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 March 31, 2023 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2023 and 2022. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2023 2022 Net market valuation gains (losses) recorded (1) $ 4,160 $ (19,681) (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. For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Business Purpose Loans

Business Purpose Loans	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2023 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 26,975 $ — $ — $ — $ 26,975 Held-for-investment at fair value — 170,000 3,831,538 1,464,345 5,465,883 Total Residential Loans $ 26,975 $ 170,000 $ 3,831,538 $ 1,464,345 $ 5,492,858 December 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia 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 At March 31, 2023, we owned mortgage servicing rights associated with $22 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 The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2023 and December 31, 2022. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 39 994 Unpaid principal balance $ 27,935 $ 822,063 Fair value of loans $ 26,975 $ 780,781 Market value of loans pledged as collateral under short-term borrowing agreements $ 26,282 $ 775,545 Weighted average coupon 6.24 % 5.12 % Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 650 $ 208 Fair value of loans with 90+ day delinquencies $ 576 $ 170 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2023 and 2022. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2023 2022 Principal balance of loans acquired (1) $ 53,046 $ 2,115,191 Principal balance of loans sold 173,153 1,827,364 Principal balance of loans transferred to HFI 657,295 687,192 Net market valuation gains (losses) recorded (2) 7,178 (31,451) (1) For the three months ended March 31, 2023 and 2022, includes zero and $102 million, respectively, of loans acquired through calls of zero and three, respectively, seasoned Sequoia securitizations. (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. Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2023 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,222 5,287 10,748 Unpaid principal balance $ 189,757 $ 4,449,021 $ 1,695,479 Fair value of loans (2) $ 170,000 $ 3,831,538 $ 1,464,345 Weighted average coupon 5.57 % 3.56 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 26 7 1,033 Unpaid principal balance of loans with 90+ day delinquencies $ 5,856 $ 5,147 $ 174,559 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 3 418 Unpaid principal balance of loans in foreclosure $ 2,336 $ 2,308 $ 74,676 December 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia 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 (1) For loans held at consolidated entities, the number of loans 90-or-more 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. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2023 and 2022. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 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 $ 657,295 N/A N/A $ 684,491 N/A Net market valuation gains (losses) recorded (463) 61,867 32,437 6,325 (270,731) (43,768) (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 loan REO activity for the three months ended March 31, 2023. We originate and invest in business purpose loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2023 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 354,166 — $ 17,219 $ — $ 371,385 Held-for-investment at fair value — 2,891,043 1,616,610 485,611 4,993,264 Total Business Purpose Loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 $ 5,364,649 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 Nearly all of the outstanding BPL term loans at March 31, 2023 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% (based on unpaid principal balance) having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at March 31, 2023 were first-lien, interest-only loans with original maturities of six At March 31, 2023, we had $811 million in commitments to fund BPL bridge loans. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2023 and 2022. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three 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 $ 174,078 $ 255,152 $ 442,727 $ 411,938 Principal balance of loans acquired 3,815 9,085 61,892 2,983 Principal balance of loans sold to third parties 217,702 12,547 331,502 — Fair value of loans transferred (1) — 80,792 — 82,291 Mortgage banking activities income (loss) recorded (2) 12,666 1,162 (24,468) 2,375 Investment fair value changes recorded (3) — 1,609 — (759) (1) 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. (2) Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio and, for bridge loans, when transferred into a securitization. See Table 20.1 for additional detail on Mortgage banking activities income (loss). (3) 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 loans 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. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the CFE guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2023 and 2022. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ 37,179 $ (592) $ (191,903) $ (1,384) REO See Note 13 for detail on business purpose loan REO activity for the three months ended March 31, 2023. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2023 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 94 1,094 1,473 1,796 Unpaid principal balance $ 349,190 $ 3,172,026 $ 1,636,460 $ 484,124 Fair value of loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 Weighted average coupon 6.98 % 5.21 % 10.20 % 10.41 % Weighted average remaining loan term (years) 9 5 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 345,080 N/A $ 675,971 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 922,296 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 2 19 53 51 Unpaid principal balance of loans with 90+ day delinquencies $ 1,566 $ 60,740 $ 32,526 $ 11,416 Fair value of loans with 90+ day delinquencies (3) $ 1,157 N/A $ 28,387 $ 11,416 Number of loans in foreclosure 1 8 52 49 Unpaid principal balance of loans in foreclosure $ 536 $ 9,378 $ 31,446 $ 7,628 Fair value of loans in foreclosure (3) $ 536 N/A $ 27,308 $ 7,628 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 (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 CFEs. (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. 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 March 31, 2023 and December 31, 2022. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 28 28 Unpaid principal balance $ 445,080 $ 447,193 Fair value of loans $ 426,599 $ 424,551 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 2 3 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 March 31, 2023 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2023 and 2022. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2023 2022 Net market valuation gains (losses) recorded (1) $ 4,160 $ (19,681) (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. 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 .

Consolidated Agency Multifamily

Consolidated Agency Multifamily Loans	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2023 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 26,975 $ — $ — $ — $ 26,975 Held-for-investment at fair value — 170,000 3,831,538 1,464,345 5,465,883 Total Residential Loans $ 26,975 $ 170,000 $ 3,831,538 $ 1,464,345 $ 5,492,858 December 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia 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 At March 31, 2023, we owned mortgage servicing rights associated with $22 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 The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2023 and December 31, 2022. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 39 994 Unpaid principal balance $ 27,935 $ 822,063 Fair value of loans $ 26,975 $ 780,781 Market value of loans pledged as collateral under short-term borrowing agreements $ 26,282 $ 775,545 Weighted average coupon 6.24 % 5.12 % Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 650 $ 208 Fair value of loans with 90+ day delinquencies $ 576 $ 170 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2023 and 2022. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2023 2022 Principal balance of loans acquired (1) $ 53,046 $ 2,115,191 Principal balance of loans sold 173,153 1,827,364 Principal balance of loans transferred to HFI 657,295 687,192 Net market valuation gains (losses) recorded (2) 7,178 (31,451) (1) For the three months ended March 31, 2023 and 2022, includes zero and $102 million, respectively, of loans acquired through calls of zero and three, respectively, seasoned Sequoia securitizations. (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. Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2023 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,222 5,287 10,748 Unpaid principal balance $ 189,757 $ 4,449,021 $ 1,695,479 Fair value of loans (2) $ 170,000 $ 3,831,538 $ 1,464,345 Weighted average coupon 5.57 % 3.56 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 26 7 1,033 Unpaid principal balance of loans with 90+ day delinquencies $ 5,856 $ 5,147 $ 174,559 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 3 418 Unpaid principal balance of loans in foreclosure $ 2,336 $ 2,308 $ 74,676 December 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia 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 (1) For loans held at consolidated entities, the number of loans 90-or-more 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. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2023 and 2022. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 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 $ 657,295 N/A N/A $ 684,491 N/A Net market valuation gains (losses) recorded (463) 61,867 32,437 6,325 (270,731) (43,768) (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 loan REO activity for the three months ended March 31, 2023. We originate and invest in business purpose loans, including term loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2023 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 354,166 — $ 17,219 $ — $ 371,385 Held-for-investment at fair value — 2,891,043 1,616,610 485,611 4,993,264 Total Business Purpose Loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 $ 5,364,649 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 Nearly all of the outstanding BPL term loans at March 31, 2023 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% (based on unpaid principal balance) having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at March 31, 2023 were first-lien, interest-only loans with original maturities of six At March 31, 2023, we had $811 million in commitments to fund BPL bridge loans. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2023 and 2022. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three 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 $ 174,078 $ 255,152 $ 442,727 $ 411,938 Principal balance of loans acquired 3,815 9,085 61,892 2,983 Principal balance of loans sold to third parties 217,702 12,547 331,502 — Fair value of loans transferred (1) — 80,792 — 82,291 Mortgage banking activities income (loss) recorded (2) 12,666 1,162 (24,468) 2,375 Investment fair value changes recorded (3) — 1,609 — (759) (1) 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. (2) Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio and, for bridge loans, when transferred into a securitization. See Table 20.1 for additional detail on Mortgage banking activities income (loss). (3) 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 loans 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. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We did not elect to account for the CAFL Bridge securitizations under the CFE guidelines. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2023 and 2022. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ 37,179 $ (592) $ (191,903) $ (1,384) REO See Note 13 for detail on business purpose loan REO activity for the three months ended March 31, 2023. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2023 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 94 1,094 1,473 1,796 Unpaid principal balance $ 349,190 $ 3,172,026 $ 1,636,460 $ 484,124 Fair value of loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 Weighted average coupon 6.98 % 5.21 % 10.20 % 10.41 % Weighted average remaining loan term (years) 9 5 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 345,080 N/A $ 675,971 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 922,296 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 2 19 53 51 Unpaid principal balance of loans with 90+ day delinquencies $ 1,566 $ 60,740 $ 32,526 $ 11,416 Fair value of loans with 90+ day delinquencies (3) $ 1,157 N/A $ 28,387 $ 11,416 Number of loans in foreclosure 1 8 52 49 Unpaid principal balance of loans in foreclosure $ 536 $ 9,378 $ 31,446 $ 7,628 Fair value of loans in foreclosure (3) $ 536 N/A $ 27,308 $ 7,628 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 (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 CFEs. (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. 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 March 31, 2023 and December 31, 2022. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 28 28 Unpaid principal balance $ 445,080 $ 447,193 Fair value of loans $ 426,599 $ 424,551 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 2 3 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 March 31, 2023 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2023 and 2022. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2023 2022 Net market valuation gains (losses) recorded (1) $ 4,160 $ (19,681) (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. For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities

Real Estate Securities	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2023 December 31, 2022 Trading $ 108,366 $ 108,329 Available-for-sale 134,980 132,146 Total Real Estate Securities $ 243,346 $ 240,475 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 March 31, 2023 and December 31, 2022. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Senior Interest-only securities (1) $ 31,297 $ 28,867 Total Senior 31,297 28,867 Subordinate RPL securities 28,689 29,002 Multifamily securities 4,979 5,027 Other third-party residential securities 43,401 45,433 Total Subordinate 77,069 79,462 Total Trading Securities $ 108,366 $ 108,329 (1) Includes $26 million of Sequoia certificated mortgage servicing rights at both March 31, 2023 and December 31, 2022. The following table presents the unpaid principal balance of trading securities by position and collateral type at March 31, 2023 and December 31, 2022. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Senior (1) $ — $ — Subordinate 211,496 215,592 Total Trading Securities $ 211,496 $ 215,592 (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 three months ended March 31, 2023 and 2022. Table 9.4 – Trading Securities Activity Three Months Ended March 31, (In Thousands) 2023 2022 Fair value of securities acquired $ 1,700 $ 5,006 Fair value of securities sold 3,509 — Net market valuation gains (losses) recorded (1) 1,961 (1,456) (1) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income. AFS Securities The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at March 31, 2023 and December 31, 2022. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Subordinate Sequoia securities $ 77,714 $ 74,367 Multifamily securities 7,670 7,647 Other third-party residential securities 49,596 50,132 Total Subordinate 134,980 132,146 Total AFS Securities $ 134,980 $ 132,146 The following table provides the activity of available-for-sale securities during the three months ended March 31, 2023 and 2022. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended March 31, (In Thousands) 2023 2022 Fair value of securities acquired $ — $ 10,000 Fair value of securities sold 2,678 — Principal balance of securities called — 14,486 Net unrealized gains (losses) on AFS securities (1) 5,007 (17,873) (1) Net unrealized gains (losses) 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 March 31, 2023, 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 March 31, 2023 and December 31, 2022. Table 9.7 – Carrying Value of AFS Securities (In Thousands) March 31, 2023 December 31, 2022 Principal balance $ 217,059 $ 221,933 Credit reserve (28,208) (28,739) Unamortized discount, net (59,334) (61,650) Amortized cost 129,517 131,544 Gross unrealized gains 18,773 16,269 Gross unrealized losses (10,742) (13,127) CECL allowance (2,568) (2,540) Carrying Value $ 134,980 $ 132,146 The following table presents the changes for the three months ended March 31, 2023, in unamortized discount and designated credit reserves on residential AFS securities. Table 9.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Three Months Ended Credit Unamortized (In Thousands) Beginning balance $ 28,739 $ 61,650 Amortization of net discount — (263) Realized credit recoveries (losses), net (48) — Acquisitions — — Sales, calls, other (206) (2,330) Transfers to (release of) credit reserves, net (277) 277 Ending Balance $ 28,208 $ 59,334 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 March 31, 2023 and December 31, 2022. 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 Unrealized (In Thousands) March 31, 2023 $ 47,384 $ (7,927) $ 28,285 $ (2,815) December 31, 2022 72,679 (12,940) 1,414 (186) At March 31, 2023, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 78 AFS securities, of which 37 were in an unrealized loss position and six were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2022, 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. Evaluating AFS Securities for Credit Losses Gross unrealized losses on our AFS securities were $11 million at March 31, 2023. 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 March 31, 2023, 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 c ash flows for such securities, which considers recent security performance and expected future performance of the underlying collateral. At March 31, 2023, our current expected credit loss ("CECL") allowance related to our AFS securities was $2.6 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 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 March 31, 2023. Table 9.10 – Significant Credit Quality Indicators March 31, 2023 Subordinate Securities Default rate 0.8% Loss severity 20% The following table details the activity related to the allowance for credit losses for AFS securities for the three months ended March 31, 2023. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended March 31, 2023 (In Thousands) Beginning balance allowance for credit losses $ 2,540 Additions to allowance for credit losses on securities for which credit losses were not previously recorded 99 Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period (71) 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 $ 2,568 Gains and losses from the sale of AFS securities are recorded as Realized gains, net, in our consolidated statements of income. The following table presents the gross realized gains and losses on sales and calls of AFS securities for the three months ended March 31, 2023 and 2022. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2023 2022 Gross realized gains - sales $ 527 $ — Gross realized gains - calls — 1,914 Gross realized losses - sales — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 527 $ 1,914

Home Equity Investments (HEI)

Home Equity Investments (HEI)	3 Months Ended
	Mar. 31, 2023
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., deed of trust) with respect to the property . Our investments in HEI allow us to share in both home price appreciation and depreciation of the associated property. The following table presents our home equity investments at March 31, 2023 and December 31, 2022. Table 10.1 – Home Equity Investments (In Thousands) March 31, 2023 December 31, 2022 HEI at Redwood $ 287,466 $ 270,835 HEI held at consolidated HEI securitization entity 129,317 132,627 Total Home Equity Investments $ 416,783 $ 403,462 At March 31, 2023, we had flow purchase agreements with HEI originators with $8 million of cumulative purchase commitments outstanding. 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 details our HEI activity during the three months ended March 31, 2023 and 2022. Table 10.2 – Activity of HEI Three Months Ended Three Months Ended (In Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Fair value of HEI purchased $ 16,559 $ — $ 40,141 $ — Net market valuation gains recorded (1) 3,840 1,068 1,192 5,731 (1) 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. 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. The following tables summarizes the characteristics of our HEI at March 31, 2023 and December 31, 2022. Table 10.3 – HEI Characteristics March 31, 2023 December 31, 2022 (Dollars in Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Number of HEI contracts 2,695 984 2,599 1,007 Average initial amount of contract $ 101 $ 94 $ 101 $ 94

Other Investments

Other Investments	3 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) March 31, 2023 December 31, 2022 Servicer advance investments $ 260,378 $ 269,259 Strategic investments 57,397 56,518 Excess MSRs 38,807 39,035 Mortgage servicing rights 24,831 25,421 Other 277 705 Total Other Investments $ 381,690 $ 390,938 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. Refer to Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding the transactions. At March 31, 2023, our servicer advance investments had a carrying value of $260 million and were associated with specified pools of residential mortgage loans with an unpaid principal balance of $11.06 billion. The outstanding servicer advance receivables associated with this investment were $233 million at March 31, 2023, 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 March 31, 2023 and December 31, 2022. Table 11.2 – Components of Servicer Advance Receivables (In Thousands) March 31, 2023 December 31, 2022 Principal and interest advances $ 78,803 $ 81,447 Escrow advances (taxes and insurance advances) 118,561 123,541 Corporate advances 35,471 35,377 Total Servicer Advance Receivables $ 232,835 $ 240,365 We account for our servicer advance investments at fair value and during the three months ended March 31, 2023, we recorded $5 million of interest income, through Other interest income, and recorded a net market valuation loss of $1 million, through Investment fair value changes, net in our consolidated statements of income. Strategic Investments Strategic investments represent investments we made in companies either through our RWT Horizons venture investment platform or separately at a corporate level. At March 31, 2023, we had made a total of 31 investments in companies through RWT Horizons with a total carrying value of $23 million, as well as six corporate-level investments. During the three months ended March 31, 2023, we recognized a net mark-to-market valuation gain of zero on our strategic investments, which otherwise would have been recorded in Investment fair value changes, net on our consolidated statements of income. During the three months ended March 31, 2023, we recorded losses from our strategic investments of $20 thousand in Other income, net on our consolidated statements of income. Excess MSRs In association with our servicer advance investments described above, we (through our consolidated SA Buyers) invested in excess MSRs associated with the same portfolio of legacy residential mortgage-backed securitizations. Additionally, we own excess MSRs associated with specified pools of multifamily loans. We account for our excess MSRs at fair value and during the three months ended March 31, 2023, we recognized $4 million of interest income through Other interest income, and recorded net market valuation losses of $0.2 million through Investment fair value changes, net on our consolidated statements of income. Mortgage Servicing Rights We invest in mortgage servicing rights associated with residential mortgage loans and contract with licensed sub-servicers to perform all servicing functions for these loans. The majority of our investments in MSRs were made through the retention of servicing rights associated with the residential jumbo mortgage loans that we acquired and subsequently sold to third parties. During the three months ended March 31, 2023, we retained zero MSRs from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries. At March 31, 2023 and December 31, 2022, our MSRs had a fair value of $25 million and $25 million, respectively, and were associated with loans with an aggregate principal balance of $2.15 billion and $2.19 billion, respectively. During the three months ended March 31, 2023, including net market valuation gains and losses on our MSRs, we recorded net income related to our MSRs of $1 million through Other income on our consolidated statements of income.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2023 December 31, 2022 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 8,032 $ 240,000 $ 14,625 $ 285,000 TBAs 3,037 195,000 1,893 220,000 Interest rate futures 75 19,000 3,976 350,600 Assets - Other Derivatives Loan purchase and interest rate lock commitments 353 39,814 336 8,166 Total Assets $ 11,497 $ 493,814 $ 20,830 $ 863,766 Liabilities - Risk Management Derivatives TBAs $ (3,018) $ 135,000 $ (16,784) $ 845,000 Interest rate futures (7,712) 270,500 (57) 60,000 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (6) 7,174 (14) 3,532 Total Liabilities $ (10,736) $ 412,674 $ (16,855) $ 908,532 Total Derivative Financial Instruments, Net $ 761 $ 906,488 $ 3,975 $ 1,772,298 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 March 31, 2023, we were party to swaps and swaptions with an aggregate notional amount of $240 million, TBA agreements with an aggregate notional amount of $330 million, and interest rate futures contracts with an aggregate notional amount of $290 million. At December 31, 2022, we were party to swaps and swaptions with an aggregate notional amount of $285 million, futures with an aggregate notional amount of $411 million and TBA agreements with an aggregate notional amount of $1.07 billion. For the three months ended March 31, 2023, risk management derivatives had net market valuation losses of $17 million. For the three months ended March 31, 2022, risk management derivatives had net market valuation gains of $92 million. These market valuation gains and losses are recorded in Mortgage banking activities, net, Investment fair value changes, net and Other income on our consolidated statements of income. Loan Purchase 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 three months ended March 31, 2023, LPCs and IRLCs had net market valuation losses of $0.2 million, which were recorded in Mortgage banking activities, net on our consolidated statements of income. For the three months ended March 31, 2022, LPCs and IRLCs had net market valuation losses of $42 million, which were recorded in Mortgage banking activities, net on our consolidated statements of income. 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 loss was $71 million and $72 million at March 31, 2023 and December 31, 2022, respectively. We are amortizing this loss into interest expense over the remaining term of our trust preferred securities and subordinated notes. For each of the three months ended March 31, 2023 and 2022, we reclassified $1 million of realized net losses from Accumulated other comprehensive loss into Interest expense. As of March 31, 2023, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months. Derivative Counterparty Credit Risk As discussed in our Annual Report on Form 10-K for the year ended December 31, 2022, we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At March 31, 2023, we assessed this risk as remote and did not record an associated specific valuation adjustment. At March 31, 2023, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) March 31, 2023 December 31, 2022 Accrued interest receivable $ 61,397 $ 60,893 Investment receivable 45,372 36,623 Deferred tax asset 41,931 41,931 Margin receivable 17,079 13,802 Operating lease right-of-use assets 15,297 16,177 REO 13,095 6,455 Fixed assets and leasehold improvements (1) 9,292 12,616 Income tax receivables 3,047 3,399 Other 25,711 19,344 Total Other Assets $ 232,221 $ 211,240 (1) Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $9 million at March 31, 2023. Accrued expenses and other liabilities at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2023 December 31, 2022 Accrued interest payable $ 51,321 $ 46,612 Payable to noncontrolling interests 46,203 44,859 Accrued compensation 20,148 30,929 Operating lease liabilities 17,638 18,563 Guarantee obligations 6,223 6,344 Residential loan and MSR repurchase reserve 5,858 7,051 Accrued operating expenses 5,696 5,740 Current accounts payable 3,162 4,234 Bridge loan holdbacks 2,953 3,301 Margin payable 2,558 5,944 Unsettled trades 1,704 — Preferred stock dividends payable 1,419 — Other 11,388 6,626 Total Accrued Expenses and Other Liabilities $ 176,271 $ 180,203 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 March 31, 2023, we had met all margin calls due. Operating Lease Right-of-Use Assets and Operating Lease Liabilities 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 SFR entities during the three months ended March 31, 2023. Table 13.3 – REO Activity Three Months Ended March 31, 2023 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 3,012 $ 544 $ 2,899 $ — $ 6,455 Transfers to REO 7,615 18 381 — 8,014 Liquidations (1) — (544) (812) — (1,356) Changes in fair value, net (192) — 174 — (18) Balance at End of Period $ 10,435 $ 18 $ 2,642 $ — $ 13,095 (1) For the three months ended March 31, 2023, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides detail on the numbers of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at March 31, 2023 and December 31, 2022. Table 13.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total At March 31, 2023 4 1 25 — 30 At December 31, 2022 2 2 24 — 28 Legal and Repurchase Reserves See Note 17 for additional information on 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 March 31, 2023, 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 three months ended March 31, 2023, and 2022 we allocated $1 million of income, and $1 million of income, respectively, to the co-investors, which were recorded in Other expenses on our consolidated statements of income. In 2021, Redwood and a third-party investor co-sponsored the transfer and securitization of HEI 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	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023, 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 March 31, 2023 and December 31, 2022. Table 14.1 – Short-Term Debt March 31, 2023 (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 6 $ 25,590 $ 1,750,000 6.83 % 5/2023-12/2023 229 Business purpose loan warehouse 4 777,067 1,650,000 7.31 % 5/2023-9/2023 112 Real estate securities repo 7 325,549 — 6.11 % 4/2023-6/2023 28 HEI warehouse 1 125,071 150,000 9.39 % 11/2023 216 Total Short-Term Debt Facilities 18 1,253,277 Servicer advance financing 1 197,883 290,000 7.04 % 11/2023 215 Promissory notes N/A 21,808 — 6.76 % N/A N/A Convertible notes, net N/A 143,484 — 4.75 % 8/2023 137 Total Short-Term Debt $ 1,616,452 December 31, 2022 (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 $ 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 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR. (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 at March 31, 2023 and December 31, 2022. Table 14.2 – Collateral for Short-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Collateral Type Held-for-sale residential loans $ 26,282 $ 775,545 Business purpose loans 1,021,051 871,072 HEI 215,517 191,278 Real estate securities On balance sheet 71,017 72,133 Sequoia securitizations (1) 110,821 74,170 Freddie Mac SLST securitizations (1) 247,970 — Freddie Mac K-Series securitization (1) 32,130 31,767 Total real estate securities owned 461,938 178,070 Restricted cash and other assets 2,023 1,097 Total Collateral for Short-Term Debt Facilities 1,726,811 2,017,062 Cash 17,329 12,713 Restricted cash — — Servicer advances 269,259 269,259 Total Collateral for Servicer Advance Financing 286,588 281,972 Total Collateral for Short-Term Debt $ 2,013,399 $ 2,299,034 (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 three months ended March 31, 2023, the average balance of our short-term debt facilities was $1.17 billion. At March 31, 2023 and December 31, 2022, accrued interest payable on our short-term debt facilities was $7 million. 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 March 31, 2023, the accrued interest payable balance on this financing was $0.5 million and the unamortized capitalized commitment costs were $0.5 million. In connection with our acquisition of Riverbend, we assumed $43 million of promissory notes which are payable on demand with a 90-day notice from the lender or which may be repaid by us with a 90-day notice. These unsecured, non-marginable, recourse notes were issued in three separate series with fixed interest rates between 6% and 8%. During the three months ended March 31, 2023, we repaid $5 million of principal of these notes. During the three months ended March 31, 2023, we repurchased $33 million of convertible debt due in 2023 and recorded a $0.1 million gain on extinguishment. At March 31, 2023 the outstanding principal balance of our convertible debt due in August 2023 was $144 million. 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 March 31, 2023. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2023 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ — $ 25,590 $ 25,590 Business purpose loans — 497,066 280,001 777,067 Real estate securities 276,367 49,182 — 325,549 HEI warehouse — — 125,071 125,071 Total Secured Short-Term Debt 276,367 546,248 430,662 1,253,277 Servicer advance financing — — 197,883 197,883 Promissory notes — 21,808 — 21,808 Convertible notes, net — — 143,484 143,484 Total Short-Term Debt $ 276,367 $ 568,056 $ 772,029 $ 1,616,452

Asset-Backed Securities Issued

Asset-Backed Securities Issued	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022, along with other selected information, are summarized in the following table. Table 15.1 – Asset-Backed Securities Issued March 31, 2023 Legacy Sequoia CAFL (1) Freddie Mac SLST Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 184,937 $ 4,155,846 $ 3,231,269 $ 1,203,589 $ 408,612 $ 106,923 $ 9,291,176 Interest-only certificates 168 57,040 115,990 14,885 6,694 — 194,777 Market valuation adjustments (16,273) (642,289) (275,083) (74,952) (20,837) (9,400) (1,038,834) ABS Issued, Net $ 168,832 $ 3,570,597 $ 3,072,176 $ 1,143,522 $ 394,469 $ 97,523 $ 8,447,119 Range of weighted average interest rates, by series (3) 3.09% to 6.06% 2.6% to 5.01% 2.34% to 6.39% 3.50% 3.41 % 3.79 % Stated maturities (3) 2024 - 2036 2047-2053 2027-2032 2028-2029 2025 2052 Number of series 20 19 19 2 1 1 December 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total (Dollars in Thousands) 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 (1) Includes $485 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at both March 31, 2023 and December 31, 2022, respectively. (2) Includes $86 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at December 31, 2022. (3) Certain ABS issued by CAFL 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 March 31, 2023, the principal balance of the ABS issued was $215 million, and the unamortized debt discount and deferred issuance costs were $5 million in total, for a net carrying value of $220 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 $217 million of BPL bridge loans and $34 million of restricted cash and other assets at March 31, 2023. 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 March 31, 2023, 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 $269 million of BPL bridge loans, $14 million of other assets, and $28 million of restricted cash at March 31, 2023. 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 were 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. During the three months ending March 31, 2023, we called the Freddie Mac SLST re-securitization and paid off the associated outstanding ABS. The stated coupon of the ABS issued was 4.75% at issuance and the final stated maturity was July 2059. The ABS issued were subject to an optional redemption through July 2023, at which time, if the redemption right had not been exercised, the ABS interest rate stepped 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 March 31, 2023, 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 March 31, 2023 and December 31, 2022. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2023 December 31, 2022 Legacy Sequoia $ 316 $ 282 Sequoia 11,259 8,880 CAFL 10,816 10,918 Freddie Mac SLST (1) 3,510 3,561 Freddie Mac K-Series 1,162 1,167 Total Accrued Interest Payable on ABS Issued $ 27,063 $ 24,808 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The tables below summarize 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 March 31, 2023 and December 31, 2022. Table 16.1 – Long-Term Debt March 31, 2023 (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 $ 129,329 $ — $ 129,329 N/A 5.71 % 9/2024 Facility B 101,691 — 101,691 N/A 5.71 % 2/2025 Facility C 66,197 (63) 66,134 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 427,310 (68) 427,242 $ 750,000 SOFR + 2.87% N/A Facility E 305,159 (912) 304,247 335,000 SOFR + 3.25% 12/2025 Recourse BPL Financing Facility F — — — 500,000 SOFR + 2.25%-2.50% 9/2024 Recourse MSR Financing Facility G 47,456 — 47,456 50,000 SOFR + 3.25% 9/2024 Total Long-Term Debt Facilities 1,077,142 (1,043) 1,076,099 Convertible notes 5.625% convertible senior notes 150,200 (1,076) 149,124 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 162,092 (2,207) 159,885 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (5,859) 209,141 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (721) 138,779 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,743,934 $ (10,906) $ 1,733,028 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 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or SOFR, plus an applicable spread. Refer to Note 16 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, for a full description of our long-term debt. The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at March 31, 2023 and December 31, 2022. Table 16.2 – Collateral for Long-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Collateral Type BPL bridge loans $ 922,296 $ 897,782 BPL term loans — 66,567 Mortgage servicing rights (including certified MSRs) 73,366 — Real estate securities Sequoia securitizations (1) 181,897 178,439 CAFL securitizations (1) 236,540 237,068 Total Collateral for Long-Term Debt $ 1,414,099 $ 1,379,856 (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 March 31, 2023 and December 31, 2022. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Long-term debt facilities $ 3,058 $ 3,364 Convertible notes 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,662 2,332 7.75% convertible senior notes 4,906 741 Trust preferred securities and subordinated notes 1,659 1,633 Total Accrued Interest Payable on Long-Term Debt $ 16,069 $ 11,966 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. Recourse MSR Financing Facility

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At March 31, 2023, we were obligated under ten non-cancelable operating leases with expiration dates through 2031 for $20 million of cumulative lease payments. For the three-month periods ended March 31, 2023 and 2022 our operating lease expense was $1 million and $1 million, respectively. The following table presents our future lease commitments at March 31, 2023. Table 17.1 – Future Lease Commitments by Year (In Thousands) March 31, 2023 2023 (9 months) $ 3,699 2024 4,554 2025 3,629 2026 3,520 2027 2,588 2028 and thereafter 1,991 Total Lease Commitments 19,981 Less: Imputed interest (2,343) Operating Lease Liabilities $ 17,638 During the three months ended March 31, 2023, we entered into one new office lease. At March 31, 2023, our operating lease liabilities were $18 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 March 31, 2023, 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 March 31, 2023, we had commitments to fund up to $811 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 March 31, 2023, we carried a $1 million contingent liability related to these commitments to fund construction advances. During the three months ended March 31, 2023, we recorded a net market valuation gain of $0.4 million related to this liability through Mortgage banking activities, net on our consolidated statements of income. 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 March 31, 2023, we had flow purchase agreements with HEI originators with $8 million of cumulative purchase commitments outstanding. These purchase agreements specify monthly minimum and maximum amounts of HEIs subject to such purchase commitments. We account for these investments under the fair value option. See 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 housing opportunities in several California urban communities, including the San Francisco Bay Area. At March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, we had incurred less than $100 thousand of cumulative losses under these arrangements. For the three months ended March 31, 2023, other income related to these arrangements was $0.2 million. All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at March 31, 2023, the loans had an unpaid principal balance of $429 million, a weighted average FICO score of 759 (at origination), and LTV ratio of 74% (at origination). At March 31, 2023, $9 million of the loans were 90 or more days delinquent, of which five of these loans with an unpaid principal balance of $1 million were in foreclosure. At March 31, 2023, 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 both March 31, 2023 and December 31, 2022, assets of such SPEs totaled $30 million, and liabilities of such SPEs totaled $6 million. 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 March 31, 2023 and December 31, 2022, our repurchase reserve associated with our residential loans and MSRs was $6 million and $6 million, respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. During the three months ended March 31, 2023 and 2022, we received one and zero repurchase request(s), respectively, and repurchased five and zero loan(s), respectively. During the three months ended March 31, 2023, we recorded a repurchase provision expense of zero. During the three months ended March 31, 2022, we recorded repurchase provision expense of $0.2 million, which was recorded in Mortgage banking activities, net, and Other income on our consolidated statements of income. At March 31, 2023 and December 31, 2022, our repurchase reserve associated with business purpose loans sold to third-parties was zero and $1 million, respectively. During the three months ended March, 31, 2023 and 2022, we received four and zero repurchase requests, respectively, for business purpose loans sold to third parties. During the three months ended March 31, 2023 and 2022, we repurchased eleven and zero business purpose loans, respectively, that had been sold to third parties. The business purpose loans repurchased in the first quarter of 2023, resolved the open repurchase requests related to loans sold to third-parties that were outstanding as of December 31, 2022, for which the $1 million reserve was previously established. No incremental repurchase provision was recorded in the first quarter of 2023 and, at March 31, 2023, no open repurchase requests were outstanding for business purpose loans sold to third parties. Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the litigation matters described in Note 17

Equity

Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to Accumulated other comprehensive income (loss) by component for the three months ended March 31, 2023 and 2022. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (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 $ 3,435 $ (72,303) $ 67,503 $ (76,430) Other comprehensive income (loss) 5,007 — (17,873) — Amounts reclassified from other (193) 1,018 (692) 1,018 Net current-period other comprehensive income (loss) 4,814 1,018 (18,565) 1,018 Balance at End of Period $ 8,249 $ (71,285) $ 48,938 $ (75,412) The following table provides a summary of reclassifications out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended March 31, (In Thousands) Income Statement 2023 2022 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 28 $ 705 Gain on sale of AFS securities Realized gains, net (221) (1,397) $ (193) $ (692) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,018 $ 1,018 $ 1,018 $ 1,018 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 three months ended March 31, 2023, we did not issue any common shares under this program. At March 31, 2023, the share issuance capacity under this program was $175 million. Issuance of Preferred Stock In 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. During the three months ended March 31, 2023, the Company declared a preferred stock dividend of $0.60417 per share, payable on April 17, 2023 to stockholders of record on March 31, 2023, which is included in Accrued expenses and other liabilities at March 31, 2023. Direct Stock Purchase and Dividend Reinvestment Plan During the three months ended March 31, 2023, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At March 31, 2023, 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 three months ended March 31, 2023 and 2022. Table 18.3 – Basic and Diluted Earnings per Common Share Three Months Ended March 31, (In Thousands, except Share Data) 2023 2022 Basic Earnings per Common Share: Net income available to common stockholders $ 3,201 $ 30,915 Less: Dividends and undistributed earnings allocated to participating securities (1,404) (1,209) Net income allocated to common stockholders $ 1,797 $ 29,706 Basic weighted average common shares outstanding 113,678,911 119,884,172 Basic Earnings per Common Share $ 0.02 $ 0.25 Diluted Earnings per Common Share: Net income available to common stockholders $ 3,201 $ 30,915 Less: Dividends and undistributed earnings allocated to participating securities (1,404) (1,348) Add back: Interest expense on convertible notes for the period, net of tax — 4,582 Net income allocated to common stockholders $ 1,797 $ 34,149 Weighted average common shares outstanding 113,678,911 119,884,172 Net effect of dilutive equity awards 455,645 290,831 Net effect of assumed convertible notes conversion to common shares — 20,331,154 Diluted weighted average common shares outstanding 114,134,556 140,506,157 Diluted Earnings per Common Share $ 0.02 $ 0.24 We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. During the three months ended March 31, 2022, 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 three months ended March 31, 2023, 46,316,074 of common shares related to the assumed conversion of our convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three months ended March 31, 2023, the number of outstanding equity awards that were antidilutive totaled 28,474. For the three months ended March 31, 2022, the number of outstanding equity awards that were antidilutive totaled 17,154. 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 has no expiration date and does not obligate us to acquire any specific number of shares or securities. During the three months ended March 31, 2023, we did not repurchase any shares of our common stock under this program. At March 31, 2023, $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.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At March 31, 2023 and December 31, 2022, 2,634,034 and 2,896,604 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 $42 million at March 31, 2023, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2023 (In Thousands) Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 5,068 $ 19,849 $ 15,271 $ — $ 40,188 Equity grants 1,982 5,950 — 422 8,354 Equity grant forfeitures (174) — — — (174) Equity compensation expense (1,420) (2,930) (1,734) (106) (6,190) Unrecognized Compensation Cost at End of Period $ 5,456 $ 22,869 $ 13,537 $ 316 $ 42,178 At March 31, 2023, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Units ("RSUs") At March 31, 2023 and December 31, 2022, there were 703,499 and 806,119 RSUs outstanding, respectively. During the three months ended March 31, 2023, there were 249,598 RSUs granted, 336,959 RSUs distributed, and 15,259 RSUs forfeited. Unvested RSUs at March 31, 2023 vest through 2027. Deferred Stock Units (“DSUs”) At March 31, 2023 and December 31, 2022, there were 5,350,399 and 4,831,338 DSUs outstanding, respectively, of which 2,741,004 and 2,495,787, respectively, had vested. During the three months ended March 31, 2023, there were 746,592 DSUs granted, 227,531 DSUs distributed, and zero DSUs forfeited. Unvested DSUs at March 31, 2023 vest through 2027. Performance Stock Units (“PSUs”) At March 31, 2023 and December 31, 2022, the target number of PSUs that were unvested was 2,078,171 and 2,354,002, respectively. Vesting for PSUs generally occurs three years from their respective grant dates based on various total shareholder return performance calculations, as discussed in Note 19 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. For 275,831 target PSU awards that were granted in December 2019, the performance vesting period ended on January 1, 2023. These 2019 PSU awards failed to reach a threshold level under their performance-based vesting criteria and resulted in the vesting of no shares of our common stock underlying these PSUs. 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 March 31, 2023 and December 31, 2022, 686,251 and 657,777 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at March 31, 2023.

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	3 Months Ended
	Mar. 31, 2023
Mortgage Banking [Abstract]
Mortgage Banking Activities, Net	Mortgage Banking Activities, Net The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 20.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2023 2022 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 6,994 $ (68,822) Trading securities (2) (239) 2,786 Risk management derivatives (3) (3,371) 73,354 Other income, net (4) (19) 617 Total residential mortgage banking activities, net 3,365 7,935 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: BPL term loans, at fair value (1) 12,666 (25,193) BPL bridge loans, at fair value 1,153 2,135 Risk management derivatives (3) (5,096) 17,033 Other income, net (5) 4,583 14,405 Total business purpose mortgage banking activities, net 13,306 8,380 Mortgage Banking Activities, Net $ 16,671 $ 16,315 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used 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, Net

Other Income, Net	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other Income, Net	Other Income, Net The following table presents the components of Other income recorded in our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 21.1 – Other Income, Net Three Months Ended March 31, (In Thousands) 2023 2022 MSR income, net (1) $ 1,077 $ 4,303 Bridge loan fees 1,592 990 Legal settlement 891 — Other 996 690 Other Income, Net $ 4,556 $ 5,983 (1) Includes servicing fees and fair value changes for MSRs and related hedges, net.

Components of Operating Expense

Components of Operating Expenses	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Components of Operating Expenses	Components of Operating Expenses Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three months ended March 31, 2023 and 2022 are presented in the following table. Table 22.1 – Components of Operating Expenses Three Months Ended March 31, (In Thousands) 2023 2022 General and Administrative Expenses Fixed compensation expense (1) $ 15,359 $ 14,628 Annual variable compensation expense 4,005 3,357 Long-term incentive award expense (2) 7,942 5,660 Systems and consulting 3,112 3,184 Office costs 2,040 2,025 Accounting and legal 919 1,675 Corporate costs 929 864 Other 1,249 1,883 Total General and Administrative Expenses 35,555 33,276 Portfolio Management Costs 3,510 1,578 Loan Acquisition Costs 1,289 4,465 Other Expenses Amortization of purchase-related intangible assets 3,107 3,534 Other 577 551 Total Other Expenses 3,684 4,085 Total Operating Expenses $ 44,038 $ 43,404 (1) Includes $1 million of severance and transition-related expenses for the three months ended March 31, 2023. (2) For the three months ended March 31, 2023 and 2022, long-term incentive award expense included $6 million and $5 million of expense for awards settleable in shares of our common stock, and $2 million and $1 million of expense for awards settleable in cash, respectively. Long-Term Cash-Based Awards During the three months ended March 31, 2023, there were no long-term cash-based retention awards granted to employees. Cash-based retention awards were granted to certain executive and non-executive employees in 2020, 2021 and 2022 that each vest over three-year periods, and are subject to continued employment through the vesting periods through 2025. At March 31, 2023 and December 31, 2022, the unamortized compensation cost of long-term cash-based awards was $2 million and $3 million, respectively. Cash Settled Deferred Stock Units During the three months ended March 31, 2023, there were no cash-settled deferred stock units granted to employees. Cash-settled deferred stock units that were granted in 2020, 2021 and 2022 and each vest over four-year periods and are subject to continued employment through the vesting periods through 2026. At March 31, 2023 and December 31, 2022, the unamortized compensation cost of cash-settled deferred stock units was $5 million and $5 million, respectively. The unamortized compensation cost is adjusted for changes in the value of our common stock at the end of each reporting period. 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. Cash Settled Performance Stock Units During the three months ended March 31, 2023, $6 million of cash-settled performance stock units ("csPSUs") were granted to certain executive and non-executive employees which vest over approximately three years through January 1, 2026. The target number of csPSUs that were granted totaled 663,499 units based on a per unit grant-date fair value of $9.75. The equivalent 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 csPSUs granted, with the target number of csPSUs granted being adjusted to reflect the value of any dividends declared on our common stock during the vesting period. Upon vesting, the recipient will receive the settlement of the vested shares in cash based on the closing market price of our common stock on the final vesting date. 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 the csPSUs at the end of each reporting period. At March 31, 2023, unamortized compensation cost of the csPSUs was $5 million. The grant date fair value of these csPSUs of $9.75 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 this csPSU grant, an implied volatility assumption of 71% (based on historical volatility), a risk-free rate of 4.23% (the three-year Treasury rate on the grant date), and a 0% dividend yield (the mathematical equivalent to reinvesting the dividends over the three-year performance period as is consistent with the terms of the PSUs) were used. With respect to the csPSU awards granted during three months ended March 31, 2023: • First, vesting would range from 0% - 250% of two-thirds of the Target csPSUs 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 csPSUs 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 csPSUs 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 csPSUs 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 csPSUs, 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 csPSUs. 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. Refer to Note 22 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, for additional information regarding long-term cash-based awards and cash-settled deferred stock units.

Taxes

Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Taxes	Taxes We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. To qualify as a REIT, the Company must distribute at least 90% of its annual REIT taxable income and meet certain other requirements that relate to, among other things, the assets it holds, the income it generates, and the composition of its stockholders. Many requirements for qualification as a REIT are complex and require analysis of particular facts and circumstances. Often there is only limited judicial or administrative interpretive guidance and as such there can be no assurance that the Internal Revenue Service or courts would agree with our various tax positions. If we were to fail to meet all the requirements for qualification as a REIT and the requirements for statutory relief, we would be subject to federal corporate income tax on our taxable income and we would not be able to elect to be taxed as a REIT for four years thereafter. Such an outcome could have a material adverse impact on our consolidated financial statements. For the three months ended March 31, 2023 and 2022, we recognized a benefit from income taxes of $1 million and $2 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at March 31, 2023 and 2022. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2023 March 31, 2022 Federal statutory rate 21.0 % 21.0 % State taxes, net of Federal tax effect, as applicable (6.3) % (1.9) % Differences in taxable (loss) income from GAAP income (14.3) % (11.3) % Change in valuation allowance — % — % REIT GAAP income or loss not subject to federal income (32.5) % (16.4) % Effective Tax Rate (32.1) % (8.6) %

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2023
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 Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2022. Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain corporate expenses not directly assigned or allocated to one of our three segments, as well as activity from certain consolidated Sequoia entities, are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate expenses primarily include interest expense from our convertible notes and trust preferred securities, indirect general and administrative expenses and other expense. The following tables present financial information by segment for the three months ended March 31, 2023 and 2022. Table 24.1 – Business Segment Financial Information Three Months Ended March 31, 2023 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 5,510 $ 4,494 $ 163,660 $ 4,852 $ 178,516 Interest expense (6,866) (4,038) (123,452) (17,723) (152,079) Net interest income (loss) (1,356) 456 40,208 (12,871) 26,437 Non-interest income (loss) Mortgage banking activities, net 3,365 13,306 — — 16,671 Investment fair value changes, net 1,076 — (1,014) (189) (127) Other income, net — 2,408 2,168 (20) 4,556 Realized gains, net — — (117) 115 (2) Total non-interest income (loss), net 4,441 15,714 1,037 (94) 21,098 General and administrative expenses (4,806) (13,678) (1,409) (15,662) (35,555) Portfolio management costs — — (3,510) — (3,510) Loan acquisition costs (175) (1,114) — — (1,289) Other expenses — (3,108) (576) — (3,684) Benefit from (provision for) income taxes 633 703 (213) — 1,123 Segment Contribution $ (1,263) $ (1,027) $ 35,537 $ (28,627) Net income $ 4,620 Non-cash amortization (expense) income, net $ (255) $ (3,701) $ (2,833) $ (2,106) $ (8,895) Three Months Ended March 31, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 12,967 $ 4,841 $ 170,572 $ 1,020 $ 189,400 Interest expense (6,936) (2,568) (116,581) (10,213) (136,298) Net interest income (loss) 6,031 2,273 53,991 (9,193) 53,102 Non-interest income (loss) Mortgage banking activities, net 7,935 8,380 — — 16,315 Investment fair value changes, net — — (5,406) (714) (6,120) Other income, net — 575 5,282 126 5,983 Realized gains, net — — 2,581 — 2,581 Total non-interest income (loss), net 7,935 8,955 2,457 (588) 18,759 General and administrative expenses (6,101) (10,472) (1,555) (15,148) (33,276) Portfolio management costs — — (1,578) — (1,578) Loan acquisition costs (1,417) (3,048) — — (4,465) Other expenses — (3,534) (551) — (4,085) Benefit from (provision for) income taxes 1,007 3,281 (1,830) — 2,458 Segment Contribution $ 7,455 $ (2,545) $ 50,934 $ (24,929) Net Income $ 30,915 Non-cash amortization income (expense), net $ 104 $ (3,890) $ 7,300 $ (2,033) $ 1,481 The following table presents the components of Corporate/Other for the three months ended March 31, 2023 and 2022. Table 24.2 – Components of Corporate/Other Three Months Ended March 31, 2023 2022 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 2,543 $ 2,309 $ 4,852 $ 1,012 $ 8 $ 1,020 Interest expense (2,504) (15,219) (17,723) (701) (9,512) (10,213) Net interest income (loss) 39 (12,910) (12,871) 311 (9,504) (9,193) Non-interest income (loss) Investment fair value changes, net (94) (95) (189) (714) — (714) Other income — (20) (20) — 126 126 Realized gains, net — 115 115 — — — Total non-interest income (loss), net (94) — (94) (714) 126 (588) General and administrative expenses — (15,662) (15,662) — (15,148) (15,148) Total $ (55) $ (28,572) $ (28,627) $ (403) $ (24,526) $ (24,929) (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 March 31, 2023 and December 31, 2022. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total March 31, 2023 Residential loans $ 26,975 $ — $ 5,295,883 $ 170,000 $ 5,492,858 Business purpose loans — 371,385 4,993,264 — 5,364,649 Consolidated Agency multifamily loans — — 426,599 — 426,599 Real estate securities 1,700 — 241,646 — 243,346 Home equity investments — — 416,783 — 416,783 Other investments — — 324,293 57,397 381,690 Goodwill — 23,373 — — 23,373 Intangible assets — 37,784 — — 37,784 Total assets 43,095 469,959 11,898,454 709,778 13,121,286 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

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at March 31, 2023 and December 31, 2022, and for the three months ended March 31, 2023 and 2022. These interim unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") — as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) — have been condensed or omitted in these interim financial statements according to these SEC rules and regulations. Management believes that the disclosures included in these interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the company's Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all normal and recurring adjustments have been made to present fairly the financial condition of the Company at March 31, 2023 and results of operations for all periods presented. The results of operations for the three months ended March 31, 2023 should not be construed as indicative of the results to be expected for the full year.
Principles of Consolidation	Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities issued prior to 2012 ("Legacy Sequoia"), certain entities formed during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest 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, 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	Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Newly Adopted Accounting Standard Updates ("ASUs") 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 new guidance was effective for fiscal years beginning after December 31, 2022. We adopted this guidance in the first quarter of 2023, which did not 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 new guidance was effective for fiscal years beginning after December 31, 2022. We adopted this guidance in the first quarter of 2023, which did not have a material impact on our consolidated financial statements. 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. Through March 31, 2023, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. 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 (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. 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 March 31, 2023, our primary LIBOR exposure included the following: $742 million of bridge loans and $140 million of trust preferred securities and subordinated debt. In 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. 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	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)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Finite-Lived Intangible Assets	The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at March 31, 2023. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at March 31, 2023 Carrying Value at March 31, 2023 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (23,559) $ 32,741 7 Broker network 18,100 (14,782) 3,318 5 Non-compete agreements 11,400 (9,975) 1,425 3 Tradenames 4,400 (4,100) 300 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (56,816) $ 37,784 6
Finite-lived Intangible Assets Amortization Expense	Estimated future amortization expense is summarized in the table below. Table 2.2 – Intangible Asset Amortization Expense by Year (In Thousands) March 31, 2023 2023 (9 months) $ 9,323 2024 9,412 2025 8,426 2026 6,694 2027 1,571 2028 and thereafter 2,358 Total Future Intangible Asset Amortization $ 37,784
Pro Forma Information	Table 2.3 – Unaudited Pro Forma Financial Information Three Months Ended March 31, 2022 (In Thousands) Supplementary pro forma information: Net interest income $ 54,815 Non-interest income 22,401 Net income 32,230

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Offsetting of Financial Assets, Liabilities, and Collateral	The following table 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 8,032 $ — $ 8,032 $ — $ (1,596) $ 6,436 TBAs 3,037 — 3,037 (1,397) — 1,640 Futures 75 — 75 (75) — — Total Assets $ 11,144 $ — $ 11,144 $ (1,472) $ (1,596) $ 8,076 Liabilities (2) TBAs $ (3,018) $ — $ (3,018) $ 1,397 $ 1,277 $ (344) Futures (7,712) — (7,712) 75 7,637 — Loan warehouse debt (938) — (938) 631 — (307) Total Liabilities $ (11,668) $ — $ (11,668) $ 2,103 $ 8,914 $ (651) 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) 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) (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)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Consolidated VIEs	The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs March 31, 2023 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 170,000 $ 3,831,538 $ — $ 1,464,345 $ — $ — $ — $ 5,465,883 Business purpose loans, held-for-investment — — 3,376,654 — — — — 3,376,654 Consolidated Agency multifamily loans — — — — 426,599 — — 426,599 Home equity investments — — — — — — 129,317 129,317 Other investments — — — — — 292,636 — 292,636 Cash and cash equivalents — — — — — 20,087 — 20,087 Restricted cash 61 70 51,428 — — — 4,716 56,275 Accrued interest receivable 324 15,096 18,009 5,069 1,288 160 — 39,946 Other assets 18 — 19,199 2,642 — 7,650 50 29,559 Total Assets $ 170,403 $ 3,846,704 $ 3,465,290 $ 1,472,056 $ 427,887 $ 320,533 $ 134,083 $ 9,836,956 Short-term debt $ — $ — $ — $ — $ — $ 197,883 $ — $ 197,883 Accrued interest payable 316 11,259 10,816 3,510 1,162 492 — 27,555 Accrued expenses and other liabilities (106) 78 4,222 — — 29,737 23,097 57,028 Asset-backed securities issued 168,832 3,570,597 3,072,176 1,143,522 394,469 — 97,523 8,447,119 Total Liabilities $ 169,042 $ 3,581,934 $ 3,087,214 $ 1,147,032 $ 395,631 $ 228,112 $ 120,620 $ 8,729,585 Value of our investments in VIEs (1) $ 1,186 $ 260,933 $ 376,042 $ 323,465 $ 32,130 $ 92,421 $ 13,463 $ 1,099,640 Number of VIEs 20 19 19 2 1 3 1 65 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 (1) Value of our investments in VIEs, as presented in this table, represents the fair value of our economic interests in the consolidated VIEs that 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 March 31, 2023 and December 31, 2022, the fair value of our interests in the CAFL Term securitizations were $295 million and $304 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. At December 31, 2022, Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a re-securitization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. During the three months ended March 31, 2023, we called the Freddie Mac SLST re-securitization and paid off the associated outstanding ABS issued. As of March 31, 2023 and December 31, 2022, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election was $323 million and $323 million, respectively, with the difference reflected in the December 31, 2022 table above due to ABS issued and carried at amortized historical cost. The following tables present income (loss) from these VIEs for the three months ended March 31, 2023 and 2022. Table 4.2 – Income (Loss) from Consolidated VIEs Three Months Ended March 31, 2023 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 2,543 $ 34,644 $ 54,437 $ 15,493 $ 4,618 $ 7,814 $ — $ 119,549 Interest expense (2,504) (30,055) (39,542) (11,218) (4,241) (3,848) — (91,408) Net interest income 39 4,589 14,895 4,275 377 3,966 — 28,141 Non-interest income Investment fair value changes, net (94) 2,442 (9,682) 8,934 363 (1,047) 425 1,341 Other income — — 172 — — — — 172 Total non-interest income, net (94) 2,442 (9,510) 8,934 363 (1,047) 425 1,513 General and administrative expenses — — — — — 10 — 10 Other expenses — — — — — (577) — (577) Income (loss) from Consolidated VIEs $ (55) $ 7,031 $ 5,385 $ 13,209 $ 740 $ 2,352 $ 425 $ 29,087 Three Months Ended March 31, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,012 $ 32,098 $ 77,334 $ 17,200 $ 4,753 $ 7,919 $ — $ 140,316 Interest expense (701) (28,171) (58,480) (14,085) (4,371) (1,662) — (107,470) Net interest income 311 3,927 18,854 3,115 382 6,257 — 32,846 Non-interest income Investment fair value changes, net (714) (3,822) 2,664 3,036 264 (3,468) 3,411 1,371 Other income — — 90 — — — — 90 Total non-interest income, net (714) (3,822) 2,754 3,036 264 (3,468) 3,411 1,461 General and administrative expenses — — — — — (31) — (31) Other expenses — — — — — (551) — (551) Income (loss) from Consolidated VIEs $ (403) $ 105 $ 21,608 $ 6,151 $ 646 $ 2,207 $ 3,411 $ 33,725
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the three months ended March 31, 2023 and 2022 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.3 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2023 2022 MSR fees received $ 684 $ 864 Funding of compensating interest, net (1) (16) Cash flows received on retained securities 2,963 14,126
Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents additional information at March 31, 2023 and December 31, 2022, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.4 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2023 December 31, 2022 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 31,208 $ 28,722 Subordinate securities, classified as AFS 77,714 74,367 Mortgage servicing rights 11,160 11,589 Maximum loss exposure (1) $ 120,082 $ 114,678 Assets transferred: Principal balance of loans outstanding $ 3,991,357 $ 4,052,922 Principal balance of loans 30+ days delinquent 21,906 27,739 (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 March 31, 2023 and December 31, 2022. Table 4.5 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2023 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2023 $ 11,160 $ 31,208 $ 77,714 Expected life (in years) (2) 7 7 15 Prepayment speed assumption (annual CPR) (2) 8 % 8 % 8 % Decrease in fair value from: 10% adverse change $ 350 $ 1,190 $ 425 25% adverse change 801 2,908 999 Discount rate assumption (2) 11 % 12 % 8 % Decrease in fair value from: 100 basis point increase $ 412 $ 1,120 $ 7,553 200 basis point increase 798 2,162 14,065 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A N/A $ 34 25% higher losses N/A N/A 83 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 (1) Senior securities included $31 million and $29 million of interest-only securities at March 31, 2023 and December 31, 2022, respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages.
Schedule of Third-Party Sponsored VIE Summary	The following table presents a summary of our interests in third-party VIEs at March 31, 2023 and December 31, 2022, grouped by asset type. Table 4.6 – Third-Party Sponsored VIE Summary (In Thousands) March 31, 2023 December 31, 2022 Mortgage-Backed Securities Senior $ 89 $ 145 Subordinate 134,335 137,241 Total Mortgage-Backed Securities 134,424 137,386 Excess MSR 6,548 7,082 Total Investments in Third-Party Sponsored VIEs $ 140,972 $ 144,468

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Carrying Values and Fair Values of Assets and Liabilities	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at March 31, 2023 and December 31, 2022. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale, at fair value $ 26,975 $ 26,975 $ 780,781 $ 780,781 Residential loans, held-for-investment, at fair value 5,465,883 5,465,883 4,832,407 4,832,407 Business purpose loans, held-for-sale, at fair value 371,385 371,385 364,073 364,073 Business purpose loans, held-for-investment, at fair value 4,993,264 4,993,264 4,968,513 4,968,513 Consolidated Agency multifamily loans, at fair value 426,599 426,599 424,551 424,551 Real estate securities, at fair value 243,346 243,346 240,475 240,475 HEIs 416,783 416,783 403,462 403,462 Servicer advance investments (1) 260,378 260,378 269,259 269,259 MSRs (1) 24,831 24,831 25,421 25,421 Excess MSRs (1) 38,807 38,807 39,035 39,035 Other investments (1) 5,727 5,727 6,155 6,155 Cash and cash equivalents 404,449 404,449 258,894 258,894 Restricted cash 86,037 86,037 70,470 70,470 Derivative assets 11,497 11,497 20,830 20,830 REO (2) 13,095 3,378 6,455 4,185 Margin receivable (2) 17,079 17,079 13,802 13,802 Liabilities Short-term debt (3) $ 1,472,968 $ 1,472,968 $ 1,853,664 $ 1,853,664 Margin payable (4) 2,558 2,558 5,944 5,944 Guarantee obligations (4) 6,223 4,612 6,344 4,738 HEI securitization non-controlling interest 23,097 23,097 22,329 22,329 Derivative liabilities 10,736 10,736 16,855 16,855 ABS issued, net at fair value 7,968,135 7,968,135 7,424,132 7,424,132 at amortized cost 478,984 452,263 562,620 524,768 Other long-term debt, net (5) 1,076,099 1,022,015 1,077,200 1,069,946 Convertible notes, net (5) 661,634 620,465 693,473 638,049 Trust preferred securities and subordinated notes, net (5) 138,779 87,885 138,767 83,700 (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.
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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,492,828 $ — $ — $ 5,492,828 Business purpose loans 5,364,649 — — 5,364,649 Consolidated Agency multifamily loans 426,599 — — 426,599 Real estate securities 243,346 — — 243,346 HEIs 416,783 — — 416,783 Servicer advance investments 260,378 — — 260,378 MSRs 24,831 — — 24,831 Excess MSRs 38,807 — — 38,807 Other investments 5,727 — — 5,727 Derivative assets 11,497 3,112 8,032 353 Liabilities HEI securitization non-controlling interest $ 23,097 $ — $ — $ 23,097 Derivative liabilities 10,736 10,730 — 6 ABS issued 7,968,135 — — 7,968,135 December 31, 2022 Carrying 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 HEIs 403,462 — — 403,462 Servicer advance investments 269,259 — — 269,259 MSRs 25,421 — — 25,421 Excess MSRs 39,035 — — 39,035 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
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 three months ended March 31, 2023. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Consolidated Agency Multifamily Loans Trading Securities AFS HEIs Servicer Advance Investments Excess MSRs MSRs and Other Investments (In Thousands) Beginning balance - $ 5,613,157 $ 5,332,586 $ 424,552 $ 108,329 $ 132,146 $ 403,462 $ 269,259 $ 39,035 $ 31,576 Acquisitions 51,816 — — 1,700 — 16,559 — — — Originations — 438,390 — — — — — — — Sales (163,695) (205,135) — (3,509) (2,150) — — — (272) Principal paydowns (111,710) (248,311) (2,113) (115) (139) (7,754) (7,529) — (70) Gains (losses) in net income, net 103,660 52,015 4,160 1,961 263 4,516 (1,352) (228) (676) Unrealized losses in OCI, net — — — — 4,860 — — — — Other settlements, net (1) (400) (4,896) — — — — — — — Ending balance - $ 5,492,828 $ 5,364,649 $ 426,599 $ 108,366 $ 134,980 $ 416,783 $ 260,378 $ 38,807 $ 30,558 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2022 $ 322 $ 22,329 $ 7,424,132 Acquisitions — — 594,327 Principal paydowns — — (181,696) Gains (losses) in net income, net 88 768 131,372 Other settlements, net (1) (57) — — Ending balance - March 31. 2023 $ 353 $ 23,097 $ 7,968,135 (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 that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at March 31, 2023 and 2022. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2023 and 2022 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 March 31, 2023 and 2022 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2023 2022 Assets Residential loans at Redwood $ 156 $ (35,397) Business purpose loans 12,239 (14,647) Net investments in consolidated Sequoia entities (1) 2,349 (4,981) Net investments in consolidated Freddie Mac SLST entities (1) 8,759 2,940 Net investments in consolidated Freddie Mac K-Series entities (1) 363 264 Net investments in consolidated CAFL Term entities (1) (8,810) 4,048 Net investment in consolidated HEI securitization entity (1) 1,194 9,628 Trading securities 1,793 (1,401) Available-for-sale securities (28) — HEIs at Redwood 3,433 1,185 Servicer advance investments (1,352) (3,081) MSRs (424) 3,526 Excess MSRs (229) (1,208) Loan purchase and interest rate lock commitments 353 2,050 Other investments (94) — Liabilities Non-controlling interest in consolidated HEI entity $ — $ (6,218) Loan purchase commitments (6) (14,442) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at March 31, 2023 and 2022, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the 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 March 31, 2023. 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 March 31, 2023. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2023 Gain (Loss) for March 31, 2023 Carrying Fair Value Measurements Using Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2023 Assets REO $ 2,820 $ — $ — $ 2,820 $ (183)
Market Valuation Gains and Losses, Net	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2023 2022 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ 6,994 $ (27,199) Residential loan purchase commitments (239) (41,623) BPL term loans held-for-sale, at fair value 12,666 (24,468) BPL term loan interest rate lock commitments — (725) BPL bridge loans 1,153 2,135 Trading securities (1) — 2,786 Risk management derivatives, net (8,467) 90,387 Total mortgage banking activities, net (2) $ 12,107 $ 1,293 Investment Fair Value Changes, Net Residential loans held-for-investment, at Redwood (called Sequoia loans) $ 183 $ (4,252) Business Purpose loans held-for-investment 1,376 (2,143) Trading securities 1,961 (4,242) Servicer advance investments (1,352) (3,081) Excess MSRs (228) (1,208) Net investments in Legacy Sequoia entities (3) (94) (714) Net investments in Sequoia entities (3) 2,442 (3,822) Net investments in Freddie Mac SLST entities (3) 8,934 3,036 Net investment in Freddie Mac K-Series entity (3) 363 264 Net investments in CAFL Term entities (3) (8,810) 4,048 Net investments in HEI securitization entities (3) 425 3,411 HEIs at Redwood 3,840 1,192 Other investments (435) 123 Risk management derivatives, net (8,704) 1,973 Credit losses on AFS securities, net (28) (705) Total investment fair value changes, net $ (127) $ (6,120) Other Income MSRs $ (590) $ 2,968 Other (120) — Total other income (4) $ (710) $ 2,968 Total Market Valuation Gains (Losses), Net $ 11,270 $ (1,859) (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 in come, 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 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 March 31, 2023 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 $ 26,975 Whole loan spread to swap rate 112 - 112 bps 112 bps Seasoned whole loan dollar price $ 91 $ 91 $ 91 Loans held by Legacy Sequoia (2) 170,000 Liability price N/A N/A Loans held by Sequoia (2) 3,831,538 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,464,345 Liability price N/A N/A Business purpose loans: BPL term loans 354,166 Senior credit spread (3) 180 - 180 bps 180 bps Subordinate credit spread (3) 240 - 600 bps 337 bps Senior credit support (3) 36 - 36 % 36 % IO discount rate (3) 7 - 13 % 10 % Prepayment rate (annual CPR) (3) 3 - 3 % 3 % Whole loan spread to treasury rate 325 - 550 bps 441 bps BPL term loans held by CAFL (2) 2,891,043 Liability price N/A N/A BPL bridge loans 2,119,440 Whole loan discount rate 5 - 15 % 10 % Senior credit spread (3) 280 - 280 bps 280 bps Subordinate credit spread (3) 335 - 1,150 bps 654 bps Senior credit support (3) 43 - 43 % 43 % Multifamily loans held by Freddie Mac K-Series (2) 426,599 Liability price N/A N/A Trading and AFS securities 243,346 Discount rate 5 - 18 % 10 % Prepayment rate (annual CPR) 5 - 65 % 9 % Default rate — - 12 % 0.5 % Loss severity — - 50 % 25 % CRT dollar price $ 64 - $ 96 $ 87 HEIs 287,466 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (depreciation) (7) - 4 % 3 % HEIs held by HEI securitization entity 129,317 Discount Rate N/A N/A Servicer advance investments 260,378 Discount rate 2 - 4 % 3 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (4) 5 - 6 yrs 5 yrs Mortgage servicing income — - 18 bps 3 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) March 31, 2023 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) MSRs $ 24,831 Discount rate 11 - 53 % 11 % Prepayment rate (annual CPR) 4 - 27 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Excess MSRs 38,807 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 17 % Excess mortgage servicing amount 8 - 19 bps 11 bps Residential loan purchase commitments, net 359 Whole loan spread to swap rate 112 - 137 bps 125 bps Pull-through rate 36 - 100 % 69 % Committed sales price $ 99 - $ 103 $ 101 Liabilities ABS issued (2) : At consolidated Sequoia entities 3,739,429 Discount rate 4 - 18 % 6 % Prepayment rate (annual CPR) 5 - 59 % 8 % Default rate — - 13 % 1 % Loss severity 25 - 50 % 29 % At consolidated CAFL Term entities 2,593,192 Discount rate — - 17 % 6 % Prepayment rate (annual CPR) — - 3 % 0.1 % Default rate 5 - 16 % 8 % Loss severity 30 - 40 % 31 % At consolidated Freddie Mac SLST entities 1,143,522 Discount rate 5 - 16 % 5 % 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) 394,469 Discount rate 3 - 10 % 5 % At consolidated HEI entities 97,523 Discount rate 10 - 14 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (depreciation) (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 March 31, 2023, the fair value of securities we owned at the consolidated Sequoia, CAFL SFR, Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities was $261 million, $295 million, $323 million, $32 million, and $13 million, respectively. (3) Values represent pricing inputs used in securitization pricing model. Credit spreads generally represent spreads to applicable swap rates. (4) 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)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2023 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 26,975 $ — $ — $ — $ 26,975 Held-for-investment at fair value — 170,000 3,831,538 1,464,345 5,465,883 Total Residential Loans $ 26,975 $ 170,000 $ 3,831,538 $ 1,464,345 $ 5,492,858 December 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia 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 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2023 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 354,166 — $ 17,219 $ — $ 371,385 Held-for-investment at fair value — 2,891,043 1,616,610 485,611 4,993,264 Total Business Purpose Loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 $ 5,364,649 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 Nearly all of the outstanding BPL term loans at March 31, 2023 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% (based on unpaid principal balance) having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at March 31, 2023 were first-lien, interest-only loans with original maturities of six At March 31, 2023, we had $811 million in commitments to fund BPL bridge loans. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2023 and 2022. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three 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 $ 174,078 $ 255,152 $ 442,727 $ 411,938 Principal balance of loans acquired 3,815 9,085 61,892 2,983 Principal balance of loans sold to third parties 217,702 12,547 331,502 — Fair value of loans transferred (1) — 80,792 — 82,291 Mortgage banking activities income (loss) recorded (2) 12,666 1,162 (24,468) 2,375 Investment fair value changes recorded (3) — 1,609 — (759) (1) 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. (2) Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio and, for bridge loans, when transferred into a securitization. See Table 20.1 for additional detail on Mortgage banking activities income (loss). (3) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2023 and 2022. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ 37,179 $ (592) $ (191,903) $ (1,384) The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2023 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 94 1,094 1,473 1,796 Unpaid principal balance $ 349,190 $ 3,172,026 $ 1,636,460 $ 484,124 Fair value of loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 Weighted average coupon 6.98 % 5.21 % 10.20 % 10.41 % Weighted average remaining loan term (years) 9 5 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 345,080 N/A $ 675,971 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 922,296 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 2 19 53 51 Unpaid principal balance of loans with 90+ day delinquencies $ 1,566 $ 60,740 $ 32,526 $ 11,416 Fair value of loans with 90+ day delinquencies (3) $ 1,157 N/A $ 28,387 $ 11,416 Number of loans in foreclosure 1 8 52 49 Unpaid principal balance of loans in foreclosure $ 536 $ 9,378 $ 31,446 $ 7,628 Fair value of loans in foreclosure (3) $ 536 N/A $ 27,308 $ 7,628 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 (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 CFEs. (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 March 31, 2023 and December 31, 2022. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 39 994 Unpaid principal balance $ 27,935 $ 822,063 Fair value of loans $ 26,975 $ 780,781 Market value of loans pledged as collateral under short-term borrowing agreements $ 26,282 $ 775,545 Weighted average coupon 6.24 % 5.12 % Delinquency information Number of loans with 90+ day delinquencies 2 1 Unpaid principal balance of loans with 90+ day delinquencies $ 650 $ 208 Fair value of loans with 90+ day delinquencies $ 576 $ 170 Number of loans in foreclosure — —
Quarterly Activity of Residential Loans Held-for-Sale	The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2023 and 2022. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2023 2022 Principal balance of loans acquired (1) $ 53,046 $ 2,115,191 Principal balance of loans sold 173,153 1,827,364 Principal balance of loans transferred to HFI 657,295 687,192 Net market valuation gains (losses) recorded (2) 7,178 (31,451) (1) For the three months ended March 31, 2023 and 2022, includes zero and $102 million, respectively, of loans acquired through calls of zero and three, respectively, seasoned Sequoia securitizations. (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.
Characteristics of Residential Loans Held-for-Investment	The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2023 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,222 5,287 10,748 Unpaid principal balance $ 189,757 $ 4,449,021 $ 1,695,479 Fair value of loans (2) $ 170,000 $ 3,831,538 $ 1,464,345 Weighted average coupon 5.57 % 3.56 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 26 7 1,033 Unpaid principal balance of loans with 90+ day delinquencies $ 5,856 $ 5,147 $ 174,559 Fair value of loans with 90+ day delinquencies N/A N/A N/A Number of loans in foreclosure 10 3 418 Unpaid principal balance of loans in foreclosure $ 2,336 $ 2,308 $ 74,676 December 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia 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 (1) For loans held at consolidated entities, the number of loans 90-or-more 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	Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 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 $ 657,295 N/A N/A $ 684,491 N/A Net market valuation gains (losses) recorded (463) 61,867 32,437 6,325 (270,731) (43,768) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.

Business Purpose Loans (Tables)

Business Purpose Loans (Tables)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Classifications and Carrying Value of Loans	The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2023 and December 31, 2022. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2023 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 26,975 $ — $ — $ — $ 26,975 Held-for-investment at fair value — 170,000 3,831,538 1,464,345 5,465,883 Total Residential Loans $ 26,975 $ 170,000 $ 3,831,538 $ 1,464,345 $ 5,492,858 December 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia 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 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2023 BPL Term BPL Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 354,166 — $ 17,219 $ — $ 371,385 Held-for-investment at fair value — 2,891,043 1,616,610 485,611 4,993,264 Total Business Purpose Loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 $ 5,364,649 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 Nearly all of the outstanding BPL term loans at March 31, 2023 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 1% (based on unpaid principal balance) having original maturities of 30 years. The outstanding BPL bridge loans held-for-investment at March 31, 2023 were first-lien, interest-only loans with original maturities of six At March 31, 2023, we had $811 million in commitments to fund BPL bridge loans. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2023 and 2022. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three 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 $ 174,078 $ 255,152 $ 442,727 $ 411,938 Principal balance of loans acquired 3,815 9,085 61,892 2,983 Principal balance of loans sold to third parties 217,702 12,547 331,502 — Fair value of loans transferred (1) — 80,792 — 82,291 Mortgage banking activities income (loss) recorded (2) 12,666 1,162 (24,468) 2,375 Investment fair value changes recorded (3) — 1,609 — (759) (1) 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. (2) Represents loan origination fee income and net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio and, for bridge loans, when transferred into a securitization. See Table 20.1 for additional detail on Mortgage banking activities income (loss). (3) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2023 and 2022. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) BPL Term at BPL Bridge at CAFL BPL Term at BPL Bridge at CAFL Net market valuation gains (losses) recorded $ 37,179 $ (592) $ (191,903) $ (1,384) The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2023 and December 31, 2022. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2023 BPL Term at Redwood BPL Term at CAFL (1) BPL Bridge at Redwood BPL Bridge at CAFL (Dollars in Thousands) Number of loans 94 1,094 1,473 1,796 Unpaid principal balance $ 349,190 $ 3,172,026 $ 1,636,460 $ 484,124 Fair value of loans $ 354,166 $ 2,891,043 $ 1,633,829 $ 485,611 Weighted average coupon 6.98 % 5.21 % 10.20 % 10.41 % Weighted average remaining loan term (years) 9 5 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 345,080 N/A $ 675,971 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 922,296 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 2 19 53 51 Unpaid principal balance of loans with 90+ day delinquencies $ 1,566 $ 60,740 $ 32,526 $ 11,416 Fair value of loans with 90+ day delinquencies (3) $ 1,157 N/A $ 28,387 $ 11,416 Number of loans in foreclosure 1 8 52 49 Unpaid principal balance of loans in foreclosure $ 536 $ 9,378 $ 31,446 $ 7,628 Fair value of loans in foreclosure (3) $ 536 N/A $ 27,308 $ 7,628 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 (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 CFEs. (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.

Consolidated Agency Multifami_2

Consolidated Agency Multifamily Loans (Tables)	3 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at March 31, 2023 and December 31, 2022. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) March 31, 2023 December 31, 2022 Number of loans 28 28 Unpaid principal balance $ 445,080 $ 447,193 Fair value of loans $ 426,599 $ 424,551 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 2 3 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 March 31, 2023 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2023 and 2022. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2023 2022 Net market valuation gains (losses) recorded (1) $ 4,160 $ (19,681) (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. For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities (Tables)

Real Estate Securities (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Fair Values of Real Estate Securities by Type	The following table presents the fair values of our real estate securities by type at March 31, 2023 and December 31, 2022. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2023 December 31, 2022 Trading $ 108,366 $ 108,329 Available-for-sale 134,980 132,146 Total Real Estate Securities $ 243,346 $ 240,475
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at March 31, 2023 and December 31, 2022. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Senior Interest-only securities (1) $ 31,297 $ 28,867 Total Senior 31,297 28,867 Subordinate RPL securities 28,689 29,002 Multifamily securities 4,979 5,027 Other third-party residential securities 43,401 45,433 Total Subordinate 77,069 79,462 Total Trading Securities $ 108,366 $ 108,329 (1) Includes $26 million of Sequoia certificated mortgage servicing rights at both March 31, 2023 and December 31, 2022. The following table presents the unpaid principal balance of trading securities by position and collateral type at March 31, 2023 and December 31, 2022. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Senior (1) $ — $ — Subordinate 211,496 215,592 Total Trading Securities $ 211,496 $ 215,592 (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 three months ended March 31, 2023 and 2022. Table 9.4 – Trading Securities Activity Three Months Ended March 31, (In Thousands) 2023 2022 Fair value of securities acquired $ 1,700 $ 5,006 Fair value of securities sold 3,509 — Net market valuation gains (losses) recorded (1) 1,961 (1,456) (1) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income.
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 March 31, 2023 and December 31, 2022. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) March 31, 2023 December 31, 2022 Subordinate Sequoia securities $ 77,714 $ 74,367 Multifamily securities 7,670 7,647 Other third-party residential securities 49,596 50,132 Total Subordinate 134,980 132,146 Total AFS Securities $ 134,980 $ 132,146 The following table provides the activity of available-for-sale securities during the three months ended March 31, 2023 and 2022. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended March 31, (In Thousands) 2023 2022 Fair value of securities acquired $ — $ 10,000 Fair value of securities sold 2,678 — Principal balance of securities called — 14,486 Net unrealized gains (losses) on AFS securities (1) 5,007 (17,873) (1) Net unrealized gains (losses) on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
Carrying Value of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at March 31, 2023 and December 31, 2022. Table 9.7 – Carrying Value of AFS Securities (In Thousands) March 31, 2023 December 31, 2022 Principal balance $ 217,059 $ 221,933 Credit reserve (28,208) (28,739) Unamortized discount, net (59,334) (61,650) Amortized cost 129,517 131,544 Gross unrealized gains 18,773 16,269 Gross unrealized losses (10,742) (13,127) CECL allowance (2,568) (2,540) Carrying Value $ 134,980 $ 132,146
Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities	The following table presents the changes for the three months ended March 31, 2023, in unamortized discount and designated credit reserves on residential AFS securities. Table 9.8 – Changes in Unamortized Discount and Designated Credit Reserves on AFS Securities Three Months Ended Credit Unamortized (In Thousands) Beginning balance $ 28,739 $ 61,650 Amortization of net discount — (263) Realized credit recoveries (losses), net (48) — Acquisitions — — Sales, calls, other (206) (2,330) Transfers to (release of) credit reserves, net (277) 277 Ending Balance $ 28,208 $ 59,334
Components of Fair Value of Available for Sale Securities by Holding Periods	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 March 31, 2023 and December 31, 2022. 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 Unrealized (In Thousands) March 31, 2023 $ 47,384 $ (7,927) $ 28,285 $ (2,815) December 31, 2022 72,679 (12,940) 1,414 (186)
Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss	The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at March 31, 2023. Table 9.10 – Significant Credit Quality Indicators March 31, 2023 Subordinate Securities Default rate 0.8% 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 for the three months ended March 31, 2023. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended March 31, 2023 (In Thousands) Beginning balance allowance for credit losses $ 2,540 Additions to allowance for credit losses on securities for which credit losses were not previously recorded 99 Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period (71) 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 $ 2,568
Gross Realized Gains and Losses on Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the three months ended March 31, 2023 and 2022. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2023 2022 Gross realized gains - sales $ 527 $ — Gross realized gains - calls — 1,914 Gross realized losses - sales — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 527 $ 1,914

Home Equity Investments (HEI) (

Home Equity Investments (HEI) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Schedule Of Home Equity Investments	The following table presents our home equity investments at March 31, 2023 and December 31, 2022. Table 10.1 – Home Equity Investments (In Thousands) March 31, 2023 December 31, 2022 HEI at Redwood $ 287,466 $ 270,835 HEI held at consolidated HEI securitization entity 129,317 132,627 Total Home Equity Investments $ 416,783 $ 403,462
Schedule Of Activity of Home Equity Investments	The following table details our HEI activity during the three months ended March 31, 2023 and 2022. Table 10.2 – Activity of HEI Three Months Ended Three Months Ended (In Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Fair value of HEI purchased $ 16,559 $ — $ 40,141 $ — Net market valuation gains recorded (1) 3,840 1,068 1,192 5,731 (1) 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. 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.
Schedule Of HEI Characteristics	The following tables summarizes the characteristics of our HEI at March 31, 2023 and December 31, 2022. Table 10.3 – HEI Characteristics March 31, 2023 December 31, 2022 (Dollars in Thousands) HEI at Redwood Securitized HEI HEI at Redwood Securitized HEI Number of HEI contracts 2,695 984 2,599 1,007 Average initial amount of contract $ 101 $ 94 $ 101 $ 94

Other Investments (Tables)

Other Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) March 31, 2023 December 31, 2022 Servicer advance investments $ 260,378 $ 269,259 Strategic investments 57,397 56,518 Excess MSRs 38,807 39,035 Mortgage servicing rights 24,831 25,421 Other 277 705 Total Other Investments $ 381,690 $ 390,938
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at March 31, 2023 and December 31, 2022. Table 11.2 – Components of Servicer Advance Receivables (In Thousands) March 31, 2023 December 31, 2022 Principal and interest advances $ 78,803 $ 81,447 Escrow advances (taxes and insurance advances) 118,561 123,541 Corporate advances 35,471 35,377 Total Servicer Advance Receivables $ 232,835 $ 240,365

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value and Notional Amount of Derivative Financial Instruments	The following table presents the fair value and notional amount of our derivative financial instruments at March 31, 2023 and December 31, 2022. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2023 December 31, 2022 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 8,032 $ 240,000 $ 14,625 $ 285,000 TBAs 3,037 195,000 1,893 220,000 Interest rate futures 75 19,000 3,976 350,600 Assets - Other Derivatives Loan purchase and interest rate lock commitments 353 39,814 336 8,166 Total Assets $ 11,497 $ 493,814 $ 20,830 $ 863,766 Liabilities - Risk Management Derivatives TBAs $ (3,018) $ 135,000 $ (16,784) $ 845,000 Interest rate futures (7,712) 270,500 (57) 60,000 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (6) 7,174 (14) 3,532 Total Liabilities $ (10,736) $ 412,674 $ (16,855) $ 908,532 Total Derivative Financial Instruments, Net $ 761 $ 906,488 $ 3,975 $ 1,772,298

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Other Assets	Other assets at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) March 31, 2023 December 31, 2022 Accrued interest receivable $ 61,397 $ 60,893 Investment receivable 45,372 36,623 Deferred tax asset 41,931 41,931 Margin receivable 17,079 13,802 Operating lease right-of-use assets 15,297 16,177 REO 13,095 6,455 Fixed assets and leasehold improvements (1) 9,292 12,616 Income tax receivables 3,047 3,399 Other 25,711 19,344 Total Other Assets $ 232,221 $ 211,240
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at March 31, 2023 and December 31, 2022 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2023 December 31, 2022 Accrued interest payable $ 51,321 $ 46,612 Payable to noncontrolling interests 46,203 44,859 Accrued compensation 20,148 30,929 Operating lease liabilities 17,638 18,563 Guarantee obligations 6,223 6,344 Residential loan and MSR repurchase reserve 5,858 7,051 Accrued operating expenses 5,696 5,740 Current accounts payable 3,162 4,234 Bridge loan holdbacks 2,953 3,301 Margin payable 2,558 5,944 Unsettled trades 1,704 — Preferred stock dividends payable 1,419 — Other 11,388 6,626 Total Accrued Expenses and Other Liabilities $ 176,271 $ 180,203
Other Real Estate	The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL SFR entities during the three months ended March 31, 2023. Table 13.3 – REO Activity Three Months Ended March 31, 2023 (In Thousands) BPL Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total Balance at beginning of period $ 3,012 $ 544 $ 2,899 $ — $ 6,455 Transfers to REO 7,615 18 381 — 8,014 Liquidations (1) — (544) (812) — (1,356) Changes in fair value, net (192) — 174 — (18) Balance at End of Period $ 10,435 $ 18 $ 2,642 $ — $ 13,095 (1) For the three months ended March 31, 2023, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides detail on the numbers of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at March 31, 2023 and December 31, 2022. Table 13.4 – REO Assets Number of REO assets Redwood Bridge Legacy Sequoia Freddie Mac SLST BPL Term at CAFL Total At March 31, 2023 4 1 25 — 30 At December 31, 2022 2 2 24 — 28

Short-Term Debt (Tables)

Short-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Short-Term Debt Facilities	The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2023 and December 31, 2022. Table 14.1 – Short-Term Debt March 31, 2023 (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 6 $ 25,590 $ 1,750,000 6.83 % 5/2023-12/2023 229 Business purpose loan warehouse 4 777,067 1,650,000 7.31 % 5/2023-9/2023 112 Real estate securities repo 7 325,549 — 6.11 % 4/2023-6/2023 28 HEI warehouse 1 125,071 150,000 9.39 % 11/2023 216 Total Short-Term Debt Facilities 18 1,253,277 Servicer advance financing 1 197,883 290,000 7.04 % 11/2023 215 Promissory notes N/A 21,808 — 6.76 % N/A N/A Convertible notes, net N/A 143,484 — 4.75 % 8/2023 137 Total Short-Term Debt $ 1,616,452 December 31, 2022 (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 $ 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 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over SOFR. (2) Promissory notes payable on demand to lender with 90-day notice.
Collateral for Short-Term Debt Facilities	The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2023 and December 31, 2022. Table 14.2 – Collateral for Short-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Collateral Type Held-for-sale residential loans $ 26,282 $ 775,545 Business purpose loans 1,021,051 871,072 HEI 215,517 191,278 Real estate securities On balance sheet 71,017 72,133 Sequoia securitizations (1) 110,821 74,170 Freddie Mac SLST securitizations (1) 247,970 — Freddie Mac K-Series securitization (1) 32,130 31,767 Total real estate securities owned 461,938 178,070 Restricted cash and other assets 2,023 1,097 Total Collateral for Short-Term Debt Facilities 1,726,811 2,017,062 Cash 17,329 12,713 Restricted cash — — Servicer advances 269,259 269,259 Total Collateral for Servicer Advance Financing 286,588 281,972 Total Collateral for Short-Term Debt $ 2,013,399 $ 2,299,034
Short-Term Debt by Collateral Type and Remaining Maturities	The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at March 31, 2023. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2023 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ — $ 25,590 $ 25,590 Business purpose loans — 497,066 280,001 777,067 Real estate securities 276,367 49,182 — 325,549 HEI warehouse — — 125,071 125,071 Total Secured Short-Term Debt 276,367 546,248 430,662 1,253,277 Servicer advance financing — — 197,883 197,883 Promissory notes — 21,808 — 21,808 Convertible notes, net — — 143,484 143,484 Total Short-Term Debt $ 276,367 $ 568,056 $ 772,029 $ 1,616,452

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	The carrying values of ABS issued by our consolidated securitization entities at March 31, 2023 and December 31, 2022, along with other selected information, are summarized in the following table. Table 15.1 – Asset-Backed Securities Issued March 31, 2023 Legacy Sequoia CAFL (1) Freddie Mac SLST Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 184,937 $ 4,155,846 $ 3,231,269 $ 1,203,589 $ 408,612 $ 106,923 $ 9,291,176 Interest-only certificates 168 57,040 115,990 14,885 6,694 — 194,777 Market valuation adjustments (16,273) (642,289) (275,083) (74,952) (20,837) (9,400) (1,038,834) ABS Issued, Net $ 168,832 $ 3,570,597 $ 3,072,176 $ 1,143,522 $ 394,469 $ 97,523 $ 8,447,119 Range of weighted average interest rates, by series (3) 3.09% to 6.06% 2.6% to 5.01% 2.34% to 6.39% 3.50% 3.41 % 3.79 % Stated maturities (3) 2024 - 2036 2047-2053 2027-2032 2028-2029 2025 2052 Number of series 20 19 19 2 1 1 December 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total (Dollars in Thousands) 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 (1) Includes $485 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at both March 31, 2023 and December 31, 2022, respectively. (2) Includes $86 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at December 31, 2022. (3) Certain ABS issued by CAFL and HEI securitization entities are subject to early redemption and interest rate step-ups as described below.
Accrued Interest Payable on Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at March 31, 2023 and December 31, 2022. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2023 December 31, 2022 Legacy Sequoia $ 316 $ 282 Sequoia 11,259 8,880 CAFL 10,816 10,918 Freddie Mac SLST (1) 3,510 3,561 Freddie Mac K-Series 1,162 1,167 Total Accrued Interest Payable on ABS Issued $ 27,063 $ 24,808 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The tables below summarize 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 March 31, 2023 and December 31, 2022. Table 16.1 – Long-Term Debt March 31, 2023 (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 $ 129,329 $ — $ 129,329 N/A 5.71 % 9/2024 Facility B 101,691 — 101,691 N/A 5.71 % 2/2025 Facility C 66,197 (63) 66,134 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 427,310 (68) 427,242 $ 750,000 SOFR + 2.87% N/A Facility E 305,159 (912) 304,247 335,000 SOFR + 3.25% 12/2025 Recourse BPL Financing Facility F — — — 500,000 SOFR + 2.25%-2.50% 9/2024 Recourse MSR Financing Facility G 47,456 — 47,456 50,000 SOFR + 3.25% 9/2024 Total Long-Term Debt Facilities 1,077,142 (1,043) 1,076,099 Convertible notes 5.625% convertible senior notes 150,200 (1,076) 149,124 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 162,092 (2,207) 159,885 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (5,859) 209,141 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (721) 138,779 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,743,934 $ (10,906) $ 1,733,028 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 (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 March 31, 2023 and December 31, 2022. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Long-term debt facilities $ 3,058 $ 3,364 Convertible notes 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,662 2,332 7.75% convertible senior notes 4,906 741 Trust preferred securities and subordinated notes 1,659 1,633 Total Accrued Interest Payable on Long-Term Debt $ 16,069 $ 11,966
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 March 31, 2023 and December 31, 2022. Table 16.2 – Collateral for Long-Term Debt (In Thousands) March 31, 2023 December 31, 2022 Collateral Type BPL bridge loans $ 922,296 $ 897,782 BPL term loans — 66,567 Mortgage servicing rights (including certified MSRs) 73,366 — Real estate securities Sequoia securitizations (1) 181,897 178,439 CAFL securitizations (1) 236,540 237,068 Total Collateral for Long-Term Debt $ 1,414,099 $ 1,379,856

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments by Year	The following table presents our future lease commitments at March 31, 2023. Table 17.1 – Future Lease Commitments by Year (In Thousands) March 31, 2023 2023 (9 months) $ 3,699 2024 4,554 2025 3,629 2026 3,520 2027 2,588 2028 and thereafter 1,991 Total Lease Commitments 19,981 Less: Imputed interest (2,343) Operating Lease Liabilities $ 17,638

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Changes to Accumulated Other Comprehensive Income by Component	The following table provides a summary of changes to Accumulated other comprehensive income (loss) by component for the three months ended March 31, 2023 and 2022. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (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 $ 3,435 $ (72,303) $ 67,503 $ (76,430) Other comprehensive income (loss) 5,007 — (17,873) — Amounts reclassified from other (193) 1,018 (692) 1,018 Net current-period other comprehensive income (loss) 4,814 1,018 (18,565) 1,018 Balance at End of Period $ 8,249 $ (71,285) $ 48,938 $ (75,412)
Reclassifications out of Accumulated Other Comprehensive Income	The following table provides a summary of reclassifications out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended March 31, (In Thousands) Income Statement 2023 2022 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 28 $ 705 Gain on sale of AFS securities Realized gains, net (221) (1,397) $ (193) $ (692) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,018 $ 1,018 $ 1,018 $ 1,018
Basic and Diluted Earnings Per Common Share	The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2023 and 2022. Table 18.3 – Basic and Diluted Earnings per Common Share Three Months Ended March 31, (In Thousands, except Share Data) 2023 2022 Basic Earnings per Common Share: Net income available to common stockholders $ 3,201 $ 30,915 Less: Dividends and undistributed earnings allocated to participating securities (1,404) (1,209) Net income allocated to common stockholders $ 1,797 $ 29,706 Basic weighted average common shares outstanding 113,678,911 119,884,172 Basic Earnings per Common Share $ 0.02 $ 0.25 Diluted Earnings per Common Share: Net income available to common stockholders $ 3,201 $ 30,915 Less: Dividends and undistributed earnings allocated to participating securities (1,404) (1,348) Add back: Interest expense on convertible notes for the period, net of tax — 4,582 Net income allocated to common stockholders $ 1,797 $ 34,149 Weighted average common shares outstanding 113,678,911 119,884,172 Net effect of dilutive equity awards 455,645 290,831 Net effect of assumed convertible notes conversion to common shares — 20,331,154 Diluted weighted average common shares outstanding 114,134,556 140,506,157 Diluted Earnings per Common Share $ 0.02 $ 0.24

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity Compensation Costs by Award Type	The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock and purchases under the Employee Stock Purchase Plan, totaled $42 million at March 31, 2023, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2023 (In Thousands) Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 5,068 $ 19,849 $ 15,271 $ — $ 40,188 Equity grants 1,982 5,950 — 422 8,354 Equity grant forfeitures (174) — — — (174) Equity compensation expense (1,420) (2,930) (1,734) (106) (6,190) Unrecognized Compensation Cost at End of Period $ 5,456 $ 22,869 $ 13,537 $ 316 $ 42,178

Mortgage Banking Activities, _2

Mortgage Banking Activities, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Mortgage Banking [Abstract]
Mortgage Banking Activities	The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 20.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2023 2022 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ 6,994 $ (68,822) Trading securities (2) (239) 2,786 Risk management derivatives (3) (3,371) 73,354 Other income, net (4) (19) 617 Total residential mortgage banking activities, net 3,365 7,935 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: BPL term loans, at fair value (1) 12,666 (25,193) BPL bridge loans, at fair value 1,153 2,135 Risk management derivatives (3) (5,096) 17,033 Other income, net (5) 4,583 14,405 Total business purpose mortgage banking activities, net 13,306 8,380 Mortgage Banking Activities, Net $ 16,671 $ 16,315 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used 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, Net (Tables)

Other Income, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Schedule of Other Income, Net	The following table presents the components of Other income recorded in our consolidated statements of income for the three months ended March 31, 2023 and 2022. Table 21.1 – Other Income, Net Three Months Ended March 31, (In Thousands) 2023 2022 MSR income, net (1) $ 1,077 $ 4,303 Bridge loan fees 1,592 990 Legal settlement 891 — Other 996 690 Other Income, Net $ 4,556 $ 5,983 (1) Includes servicing fees and fair value changes for MSRs and related hedges, net.

Components of Operating Expen_2

Components of Operating Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Components of General and Administrative Expenses and Other Expenses	Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three months ended March 31, 2023 and 2022 are presented in the following table. Table 22.1 – Components of Operating Expenses Three Months Ended March 31, (In Thousands) 2023 2022 General and Administrative Expenses Fixed compensation expense (1) $ 15,359 $ 14,628 Annual variable compensation expense 4,005 3,357 Long-term incentive award expense (2) 7,942 5,660 Systems and consulting 3,112 3,184 Office costs 2,040 2,025 Accounting and legal 919 1,675 Corporate costs 929 864 Other 1,249 1,883 Total General and Administrative Expenses 35,555 33,276 Portfolio Management Costs 3,510 1,578 Loan Acquisition Costs 1,289 4,465 Other Expenses Amortization of purchase-related intangible assets 3,107 3,534 Other 577 551 Total Other Expenses 3,684 4,085 Total Operating Expenses $ 44,038 $ 43,404 (1) Includes $1 million of severance and transition-related expenses for the three months ended March 31, 2023. (2) For the three months ended March 31, 2023 and 2022, long-term incentive award expense included $6 million and $5 million of expense for awards settleable in shares of our common stock, and $2 million and $1 million of expense for awards settleable in cash, respectively.

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Reconciliation of Statutory Tax Rate to Effective Tax Rate	The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at March 31, 2023 and 2022. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2023 March 31, 2022 Federal statutory rate 21.0 % 21.0 % State taxes, net of Federal tax effect, as applicable (6.3) % (1.9) % Differences in taxable (loss) income from GAAP income (14.3) % (11.3) % Change in valuation allowance — % — % REIT GAAP income or loss not subject to federal income (32.5) % (16.4) % Effective Tax Rate (32.1) % (8.6) %

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business Segment Financial Information	The following tables present financial information by segment for the three months ended March 31, 2023 and 2022. Table 24.1 – Business Segment Financial Information Three Months Ended March 31, 2023 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 5,510 $ 4,494 $ 163,660 $ 4,852 $ 178,516 Interest expense (6,866) (4,038) (123,452) (17,723) (152,079) Net interest income (loss) (1,356) 456 40,208 (12,871) 26,437 Non-interest income (loss) Mortgage banking activities, net 3,365 13,306 — — 16,671 Investment fair value changes, net 1,076 — (1,014) (189) (127) Other income, net — 2,408 2,168 (20) 4,556 Realized gains, net — — (117) 115 (2) Total non-interest income (loss), net 4,441 15,714 1,037 (94) 21,098 General and administrative expenses (4,806) (13,678) (1,409) (15,662) (35,555) Portfolio management costs — — (3,510) — (3,510) Loan acquisition costs (175) (1,114) — — (1,289) Other expenses — (3,108) (576) — (3,684) Benefit from (provision for) income taxes 633 703 (213) — 1,123 Segment Contribution $ (1,263) $ (1,027) $ 35,537 $ (28,627) Net income $ 4,620 Non-cash amortization (expense) income, net $ (255) $ (3,701) $ (2,833) $ (2,106) $ (8,895) Three Months Ended March 31, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 12,967 $ 4,841 $ 170,572 $ 1,020 $ 189,400 Interest expense (6,936) (2,568) (116,581) (10,213) (136,298) Net interest income (loss) 6,031 2,273 53,991 (9,193) 53,102 Non-interest income (loss) Mortgage banking activities, net 7,935 8,380 — — 16,315 Investment fair value changes, net — — (5,406) (714) (6,120) Other income, net — 575 5,282 126 5,983 Realized gains, net — — 2,581 — 2,581 Total non-interest income (loss), net 7,935 8,955 2,457 (588) 18,759 General and administrative expenses (6,101) (10,472) (1,555) (15,148) (33,276) Portfolio management costs — — (1,578) — (1,578) Loan acquisition costs (1,417) (3,048) — — (4,465) Other expenses — (3,534) (551) — (4,085) Benefit from (provision for) income taxes 1,007 3,281 (1,830) — 2,458 Segment Contribution $ 7,455 $ (2,545) $ 50,934 $ (24,929) Net Income $ 30,915 Non-cash amortization income (expense), net $ 104 $ (3,890) $ 7,300 $ (2,033) $ 1,481
Components of Corporate and Other	The following table presents the components of Corporate/Other for the three months ended March 31, 2023 and 2022. Table 24.2 – Components of Corporate/Other Three Months Ended March 31, 2023 2022 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 2,543 $ 2,309 $ 4,852 $ 1,012 $ 8 $ 1,020 Interest expense (2,504) (15,219) (17,723) (701) (9,512) (10,213) Net interest income (loss) 39 (12,910) (12,871) 311 (9,504) (9,193) Non-interest income (loss) Investment fair value changes, net (94) (95) (189) (714) — (714) Other income — (20) (20) — 126 126 Realized gains, net — 115 115 — — — Total non-interest income (loss), net (94) — (94) (714) 126 (588) General and administrative expenses — (15,662) (15,662) — (15,148) (15,148) Total $ (55) $ (28,572) $ (28,627) $ (403) $ (24,526) $ (24,929) (1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4
Supplemental Information by Segment	The following table presents supplemental information by segment at March 31, 2023 and December 31, 2022. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total March 31, 2023 Residential loans $ 26,975 $ — $ 5,295,883 $ 170,000 $ 5,492,858 Business purpose loans — 371,385 4,993,264 — 5,364,649 Consolidated Agency multifamily loans — — 426,599 — 426,599 Real estate securities 1,700 — 241,646 — 243,346 Home equity investments — — 416,783 — 416,783 Other investments — — 324,293 57,397 381,690 Goodwill — 23,373 — — 23,373 Intangible assets — 37,784 — — 37,784 Total assets 43,095 469,959 11,898,454 709,778 13,121,286 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

Organization (Details)

Organization (Details)	3 Months Ended
	Mar. 31, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)		3 Months Ended			12 Months Ended
	Jul. 01, 2022 USD ($)	Mar. 31, 2023 USD ($) partnership	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2018 partnership
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership		2			2
Amortization of intangible assets		$ 3,000,000		$ 4,000,000
Riverbend Funding, LLC
Variable Interest Entity [Line Items]
Intangibles acquired	$ 95,000,000
Goodwill acquired during the period			$ 23,000,000
Change in amount of contingent consideration liability	$ 0
Contingent consideration		$ 0
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership		2
VIE, ownership interest rate (as a percent)		80%

Basis of Presentation - Intangi

Basis of Presentation - Intangible Assets – Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying value	$ 37,784
5 Arches LLC and CoreVest
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	94,600
Accumulated amortization	(56,816)
Carrying value	$ 37,784
Weighted Average Amortization Period (in years)	6 years
5 Arches LLC and CoreVest | Borrower network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 56,300
Accumulated amortization	(23,559)
Carrying value	$ 32,741
Weighted Average Amortization Period (in years)	7 years
5 Arches LLC and CoreVest | Broker network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 18,100
Accumulated amortization	(14,782)
Carrying value	$ 3,318
Weighted Average Amortization Period (in years)	5 years
5 Arches LLC and CoreVest | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 11,400
Accumulated amortization	(9,975)
Carrying value	$ 1,425
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Tradenames
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 4,400
Accumulated amortization	(4,100)
Carrying value	$ 300
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 1,800
Accumulated amortization	(1,800)
Carrying value	$ 0
Weighted Average Amortization Period (in years)	2 years
5 Arches LLC and CoreVest | Loan administration fees on existing loan assets
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 2,600
Accumulated amortization	(2,600)
Carrying value	$ 0
Weighted Average Amortization Period (in years)	1 year

Basis of Presentation - Intan_2

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2023 (9 months)	$ 9,323
2024	9,412
2025	8,426
2026	6,694
2027	1,571
2028 and thereafter	2,358
Total Future Intangible Asset Amortization	$ 37,784

Basis of Presentation - Pro For

Basis of Presentation - Pro Forma Information (Details) - Riverbend Acquisition $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Business Acquisition [Line Items]
Net interest income	$ 54,815
Non-interest income	22,401
Net income	$ 32,230

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Borrowings	$ 1,743,934	$ 1,746,145
BPL bridge loans
Debt Instrument [Line Items]
Borrowings	742,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Borrowings	$ 139,500	$ 139,500

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 11,497	$ 20,830
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(10,736)	(16,855)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(11,668)	(241,536)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(11,668)	(241,536)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		2,103	226,625
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		8,914	4,518
Net Amount		(651)	(10,393)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		8,032	14,625
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		8,032	14,625
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		0	0
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(1,596)	(5,944)
Net Amount		6,436	8,681
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		3,037	1,893
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		3,037	1,893
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(1,397)	(1,873)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		1,640	20
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(3,018)	(16,784)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(3,018)	(16,784)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		1,397	1,873
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		1,277	4,518
Net Amount		(344)	(10,393)
Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		75	3,976
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		75	3,976
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(75)	(57)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		0	3,919
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(7,712)	(57)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(7,712)	(57)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		75	57
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		7,637	0
Net Amount		0	0
Interest Rate Agreement, TBAs, and Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		11,144	20,494
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		11,144	20,494
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(1,472)	(1,930)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(1,596)	(5,944)
Net Amount		8,076	12,620
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(938)	(224,695)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(938)	(224,695)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		631	224,695
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		$ (307)	$ 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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023 partnership entity	Dec. 31, 2018 partnership
Variable Interest Entity [Line Items]
Number of partnerships consolidated	2	2
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated	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 (in entities) | entity	46

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entities Accounted for as Collateralized Financing Entities (Details) $ in Thousands		Mar. 31, 2023 USD ($) Investment	Dec. 31, 2022 USD ($) Investment
Variable Interest Entity [Line Items]
Home equity investments		$ 416,783	$ 403,462
Other investments	[1]	381,690	390,938
Cash and cash equivalents	[1]	404,449	258,894
Restricted cash		86,000
Accrued interest receivable		61,397	60,893
Other assets	[1]	232,221	211,240
Total Assets	[1]	13,121,286	13,030,899
Short-term debt	[1]	1,616,452	2,029,679
Accrued interest payable		51,321	46,612
Accrued expenses and other liabilities	[1]	176,271	180,203
Asset-backed securities issued	[1]	8,447,119	7,986,752
Total liabilities	[1]	11,983,606	11,946,914
CAFL
Variable Interest Entity [Line Items]
Fair value of securities owned		295,000	304,000
Freddie Mac SLST
Variable Interest Entity [Line Items]
Fair value of securities owned		323,000	323,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets		9,836,956	9,257,291
Total liabilities		8,729,585	8,270,276
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		129,317	132,627
Other investments		292,636	301,213
Cash and cash equivalents		20,087	13,475
Restricted cash		56,275	29,862
Accrued interest receivable		39,946	36,392
Other assets		29,559	25,397
Total Assets		9,836,956	9,257,291
Short-term debt		197,883	206,510
Accrued interest payable		27,555	25,300
Accrued expenses and other liabilities		57,028	51,714
Asset-backed securities issued		8,447,119	7,986,752
Total liabilities		8,729,585	8,270,276
Value of our investments in VIEs		$ 1,099,640	$ 979,267
Number of VIEs | Investment		65	64
Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 5,465,883	$ 4,832,407
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	4,993,264	4,968,513
Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,376,654	3,461,367
Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		426,599	424,551
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		61	69
Accrued interest receivable		324	284
Other assets		18	637
Total Assets		170,403	185,922
Short-term debt		0	0
Accrued interest payable		316	282
Accrued expenses and other liabilities		(106)	0
Asset-backed securities issued		168,832	184,191
Total liabilities		169,042	184,473
Value of our investments in VIEs		$ 1,186	$ 1,285
Number of VIEs | Investment		20	20
Legacy Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 170,000	$ 184,932
Legacy Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Legacy Sequoia | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		70	73
Accrued interest receivable		15,096	11,227
Other assets		0	0
Total Assets		3,846,704	3,201,717
Short-term debt		0	0
Accrued interest payable		11,259	8,880
Accrued expenses and other liabilities		78	81
Asset-backed securities issued		3,570,597	2,971,109
Total liabilities		3,581,934	2,980,070
Value of our investments in VIEs		$ 260,933	$ 219,299
Number of VIEs | Investment		19	17
Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 3,831,538	$ 3,190,417
Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
CAFL | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	710
Restricted cash		51,428	26,296
Accrued interest receivable		18,009	18,102
Other assets		19,199	14,265
Total Assets		3,465,290	3,520,740
Short-term debt		0	0
Accrued interest payable		10,816	10,918
Accrued expenses and other liabilities		4,222	4,559
Asset-backed securities issued		3,072,176	3,115,807
Total liabilities		3,087,214	3,131,284
Value of our investments in VIEs		$ 376,042	$ 385,927
Number of VIEs | Investment		19	19
CAFL | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
CAFL | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,376,654	3,461,367
CAFL | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		5,069	5,144
Other assets		2,642	2,898
Total Assets		1,472,056	1,465,100
Short-term debt		0	0
Accrued interest payable		3,510	3,561
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		1,143,522	1,222,150
Total liabilities		1,147,032	1,225,711
Value of our investments in VIEs		$ 323,465	$ 237,807
Number of VIEs | Investment		2	3
Freddie Mac SLST | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 1,464,345	$ 1,457,058
Freddie Mac SLST | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		1,288	1,293
Other assets		0	0
Total Assets		427,887	425,844
Short-term debt		0	0
Accrued interest payable		1,162	1,167
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		394,469	392,785
Total liabilities		395,631	393,952
Value of our investments in VIEs		$ 32,130	$ 31,767
Number of VIEs | Investment		1	1
Freddie Mac K-Series | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Freddie Mac K-Series | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		426,599	424,551
Servicing Investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		292,636	301,213
Cash and cash equivalents		20,087	12,765
Restricted cash		0	0
Accrued interest receivable		160	342
Other assets		7,650	7,547
Total Assets		320,533	321,867
Short-term debt		197,883	206,510
Accrued interest payable		492	492
Accrued expenses and other liabilities		29,737	24,745
Asset-backed securities issued		0	0
Total liabilities		228,112	231,747
Value of our investments in VIEs		$ 92,421	$ 90,120
Number of VIEs | Investment		3	3
Servicing Investment | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Servicing Investment | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Servicing Investment | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
HEI | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		129,317	132,627
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		4,716	3,424
Accrued interest receivable		0	0
Other assets		50	50
Total Assets		134,083	136,101
Short-term debt		0	0
Accrued interest payable		0	0
Accrued expenses and other liabilities		23,097	22,329
Asset-backed securities issued		97,523	100,710
Total liabilities		120,620	123,039
Value of our investments in VIEs		$ 13,463	$ 13,062
Number of VIEs | Investment		1	1
Fair value of securities owned		$ 13,000
HEI | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	$ 0
HEI | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
HEI | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Principles of Consolidation - I

Principles of Consolidation - Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Variable Interest Entity [Line Items]
Interest income	$ 178,516	$ 189,400
Interest expense	(152,079)	(136,298)
Net Interest Income	26,437	53,102
Investment fair value changes, net	(127)	(6,120)
Total non-interest income, net	21,098	18,759
General and administrative expenses	(35,555)	(33,276)
Net Income	4,620	30,915
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	119,549	140,316
Interest expense	(91,408)	(107,470)
Net Interest Income	28,141	32,846
Investment fair value changes, net	1,341	1,371
Other income	172	90
Total non-interest income, net	1,513	1,461
General and administrative expenses	(10)
General and administrative expenses		(31)
Other expenses	(577)	(551)
Net Income	29,087	33,725
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	2,543	1,012
Interest expense	(2,504)	(701)
Net Interest Income	39	311
Investment fair value changes, net	(94)	(714)
Other income	0	0
Total non-interest income, net	(94)	(714)
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	(55)	(403)
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	34,644	32,098
Interest expense	(30,055)	(28,171)
Net Interest Income	4,589	3,927
Investment fair value changes, net	2,442	(3,822)
Other income	0	0
Total non-interest income, net	2,442	(3,822)
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	7,031	105
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	54,437	77,334
Interest expense	(39,542)	(58,480)
Net Interest Income	14,895	18,854
Investment fair value changes, net	(9,682)	2,664
Other income	172	90
Total non-interest income, net	(9,510)	2,754
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	5,385	21,608
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	15,493	17,200
Interest expense	(11,218)	(14,085)
Net Interest Income	4,275	3,115
Investment fair value changes, net	8,934	3,036
Other income	0	0
Total non-interest income, net	8,934	3,036
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	13,209	6,151
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,618	4,753
Interest expense	(4,241)	(4,371)
Net Interest Income	377	382
Investment fair value changes, net	363	264
Other income	0	0
Total non-interest income, net	363	264
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	740	646
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	7,814	7,919
Interest expense	(3,848)	(1,662)
Net Interest Income	3,966	6,257
Investment fair value changes, net	(1,047)	(3,468)
Other income	0	0
Total non-interest income, net	(1,047)	(3,468)
General and administrative expenses	(10)
General and administrative expenses		(31)
Other expenses	(577)	(551)
Net Income	2,352	2,207
HEI | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	0	0
Interest expense	0	0
Net Interest Income	0	0
Investment fair value changes, net	425	3,411
Other income	0	0
Total non-interest income, net	425	3,411
General and administrative expenses	0
General and administrative expenses		0
Other expenses	0	0
Net Income	$ 425	$ 3,411

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Variable Interest Entity [Line Items]
MSR fees received	$ 684	$ 864
Funding of compensating interest, net	(1)	(16)
Cash flows received on retained securities	$ 2,963	$ 14,126

Principles of Consolidation - S

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	$ 134,980	$ 132,146
Total Subordinate Investment Securities
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	134,980	132,146
Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Maximum loss exposure	120,082	114,678
Assets transferred:
Principal balance of loans outstanding	3,991,357	4,052,922
Principal balance of loans 30+ days delinquent	21,906	27,739
Variable Interest Entity, Not Primary Beneficiary | Total Subordinate Investment Securities
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	77,714	74,367
Interest-only, senior and subordinate securities, classified as trading | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Interest-only, senior and subordinate securities, classified as trading	31,208	28,722
Mortgage servicing rights
On-balance sheet assets, at fair value:
Mortgage servicing rights	24,831	25,421
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Mortgage servicing rights	$ 11,160	$ 11,589

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	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
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	$ 11,160	$ 11,589
Expected life (in years)	7 years	7 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	8%
Decrease in fair value from:
10% adverse change	$ 350	$ 311
25% adverse change	$ 801	$ 779
Discount rate assumption	11%	11%
Decrease in fair value from:
100 basis point increase	$ 412	$ 430
200 basis point increase	798	832
Senior Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 31,208	$ 28,722
Expected life (in years)	7 years	7 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	10%
Decrease in fair value from:
10% adverse change	$ 1,190	$ 970
25% adverse change	$ 2,908	$ 2,344
Discount rate assumption	12%	12%
Decrease in fair value from:
100 basis point increase	$ 1,120	$ 980
200 basis point increase	$ 2,162	$ 1,894
Credit loss assumption	0.03%	0.03%
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	$ 77,714	$ 74,367
Expected life (in years)	15 years	16 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	8%
Decrease in fair value from:
10% adverse change	$ 425	$ 386
25% adverse change	$ 999	$ 907
Discount rate assumption	8%	9%
Decrease in fair value from:
100 basis point increase	$ 7,553	$ 7,198
200 basis point increase	$ 14,065	$ 13,394
Credit loss assumption	0.03%	0.03%
Decrease in fair value from:
10% higher losses	$ 34	$ 31
25% higher losses	$ 83	$ 76
Minimum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Minimum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Minimum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Maximum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%
Maximum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%
Maximum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%

Principles of Consolidation -_3

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 243,346	$ 240,475
Other assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		140,972	144,468
Other assets | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		89	145
Other assets | Subordinate | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		134,335	137,241
Other assets | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		134,424	137,386
Other assets | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 6,548	$ 7,082
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, 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		Mar. 31, 2023	Dec. 31, 2022
Assets
Real estate securities, at fair value		$ 108,366	$ 108,329
HEIs	[1]	416,783	403,462
Derivative assets	[1]	11,497	20,830
Liabilities
Derivative liabilities	[1]	10,736	16,855
ABS issued, net, At fair value		7,968,135	7,424,132
Residential loans, held-for-sale, at fair value
Assets
Loans receivable, fair value		26,282	775,545
Servicer advance investments
Assets
MSRs		260,378	269,259
Carrying Value
Assets
Real estate securities, at fair value		243,346	240,475
Other financial instruments		5,727	6,155
Cash and cash equivalents		404,449	258,894
Restricted cash		86,037	70,470
Derivative assets		11,497	20,830
Margin receivable		17,079	13,802
Liabilities
Margin payable		2,558	5,944
Guarantee obligation		6,223	6,344
Derivative liabilities		10,736	16,855
ABS issued, net, At fair value		7,968,135	7,424,132
ABS issued, net, At amortized cost		478,984	562,620
Other long-term debt, net		1,076,099	1,077,200
Convertible notes, net		661,634	693,473
Trust preferred securities and subordinated notes, net		138,779	138,767
Carrying Value | Servicer Advance Investments
Assets
MSRs		260,378	269,259
Carrying Value | MSRs
Assets
MSRs		24,831	25,421
Carrying Value | Excess MSRs
Assets
REO		38,807	39,035
Carrying Value | REO
Assets
REO		13,095	6,455
Carrying Value | Short-term debt
Liabilities
Short-term debt		1,472,968	1,853,664
Carrying Value | Servicer advance investments | Residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		26,975	780,781
Carrying Value | Servicer advance investments | Residential loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		5,465,883	4,832,407
Carrying Value | Servicer advance investments | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		371,385	364,073
Carrying Value | Servicer advance investments | Business purpose loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,993,264	4,968,513
Carrying Value | Servicer advance investments | Consolidated Agency multifamily loans, at fair value
Assets
Loans receivable, fair value		426,599	424,551
Fair Value
Assets
Real estate securities, at fair value		243,346	240,475
Other financial instruments		5,727	6,155
Cash and cash equivalents		404,449	258,894
Restricted cash		86,037	70,470
Derivative assets		11,497	20,830
Margin receivable		17,079	13,802
Liabilities
Margin payable		2,558	5,944
Guarantee obligation		4,612	4,738
Derivative liabilities		10,736	16,855
ABS issued, net, At fair value		7,968,135	7,424,132
ABS issued, net, At amortized cost		452,263	524,768
Other long-term debt, net		1,022,015	1,069,946
Convertible notes, net		620,465	638,049
Trust preferred securities and subordinated notes, net		87,885	83,700
Fair Value | Servicer Advance Investments
Assets
MSRs		260,378	269,259
Fair Value | MSRs
Assets
MSRs		24,831	25,421
Fair Value | Excess MSRs
Assets
REO		38,807	39,035
Fair Value | REO
Assets
REO		3,378	4,185
Fair Value | Short-term debt
Liabilities
Short-term debt		1,472,968	1,853,664
Fair Value | Servicer advance investments | Residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		26,975	780,781
Fair Value | Servicer advance investments | Residential loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		5,465,883	4,832,407
Fair Value | Servicer advance investments | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		371,385	364,073
Fair Value | Servicer advance investments | Business purpose loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,993,264	4,968,513
Fair Value | Servicer advance investments | Consolidated Agency multifamily loans, at fair value
Assets
Loans receivable, fair value		426,599	424,551
HEIs | Carrying Value
Assets
HEIs		416,783	403,462
Liabilities
HEI securitization non-controlling interest		23,097	22,329
HEIs | Fair Value
Assets
HEIs		416,783	403,462
Liabilities
HEI securitization non-controlling interest		$ 23,097	$ 22,329
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments	$ 6
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	2	$ 5
Residential Loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	53	2,120
Business purpose loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	442	920
HEIs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions		40
MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions		$ 6
Shared home appreciation options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	$ 17

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		Mar. 31, 2023	Dec. 31, 2022
Assets
Real estate securities, at fair value		$ 108,366	$ 108,329
Other investments	[1]	381,690	390,938
Derivative assets	[1]	11,497	20,830
Liabilities
Derivative liabilities	[1]	10,736	16,855
ABS issued		7,968,135	7,424,132
Fair Value, Measurements, Recurring
Assets
Business purpose loans		5,364,649	5,332,586
Consolidated Agency multifamily loans		426,599	424,551
Real estate securities, at fair value		243,346	240,475
HEIs		416,783	403,462
Servicer advance investments		260,378	269,259
MSRs		24,831	25,421
Excess MSRs		38,807	39,035
Other investments		5,727	6,155
Derivative assets		11,497	20,830
Liabilities
HEI securitization non-controlling interest		23,097	22,329
Derivative liabilities		10,736	16,855
ABS issued		7,968,135	7,424,132
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
HEIs		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
Other investments		0	0
Derivative assets		3,112	5,869
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		10,730	16,841
ABS issued		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
HEIs		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
Other investments		0	0
Derivative assets		8,032	14,625
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		0	0
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Business purpose loans		5,364,649	5,332,586
Consolidated Agency multifamily loans		426,599	424,551
Real estate securities, at fair value		243,346	240,475
HEIs		416,783	403,462
Servicer advance investments		260,378	269,259
MSRs		24,831	25,421
Excess MSRs		38,807	39,035
Other investments		5,727	6,155
Derivative assets		353	336
Liabilities
HEI securitization non-controlling interest		23,097	22,329
Derivative liabilities		6	14
ABS issued		7,968,135	7,424,132
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		5,492,828	5,613,157
Fair Value, Measurements, Recurring | Residential Loans | Level 1
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Residential Loans | Level 2
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Residential Loans | Level 3
Assets
Residential loans		$ 5,492,828	$ 5,613,157
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, 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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Point Noncontrolling Interest
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	$ 22,329
Acquisitions	0
Principal paydowns	0
Gains (losses) in net income, net	768
Other settlements, net	0
Ending balance - March 31. 2023	23,097
ABS Issued
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	7,424,132
Acquisitions	594,327
Principal paydowns	(181,696)
Gains (losses) in net income, net	131,372
Other settlements, net	0
Ending balance - March 31. 2023	7,968,135
Residential Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	5,613,157
Acquisitions	51,816
Acquisitions	53,000	$ 2,120,000
Originations	0
Sales	(163,695)
Principal paydowns	(111,710)
Gains (losses) in net income, net	103,660
Unrealized losses in OCI, net	0
Other settlements, net	(400)
Ending balance - March 31, 2023	5,492,828
Business purpose loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	5,332,586
Acquisitions	0
Originations	438,390
Sales	(205,135)
Principal paydowns	(248,311)
Gains (losses) in net income, net	52,015
Unrealized losses in OCI, net	0
Other settlements, net	(4,896)
Ending balance - March 31, 2023	5,364,649
Consolidated Agency multifamily loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	424,552
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(2,113)
Gains (losses) in net income, net	4,160
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	426,599
Trading Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	108,329
Acquisitions	1,700
Originations	0
Sales	(3,509)
Principal paydowns	(115)
Gains (losses) in net income, net	1,961
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	108,366
Available-for-sale securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	132,146
Acquisitions	0
Originations	0
Sales	(2,150)
Principal paydowns	(139)
Gains (losses) in net income, net	263
Unrealized losses in OCI, net	4,860
Other settlements, net	0
Ending balance - March 31, 2023	134,980
Servicer Advance Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	269,259
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(7,529)
Gains (losses) in net income, net	(1,352)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	260,378
Excess MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	39,035
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	(228)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	38,807
HEIs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	403,462
Acquisitions	16,559
Acquisitions	17,000
Originations	0
Sales	0
Principal paydowns	(7,754)
Gains (losses) in net income, net	4,516
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	416,783
MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	31,576
Acquisitions	0
Acquisitions		$ 6,000
Originations	0
Sales	(272)
Principal paydowns	(70)
Gains (losses) in net income, net	(676)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2023	30,558
Derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2022	322
Acquisitions	0
Principal paydowns	0
Gains (losses) in net income, net	88
Other settlements, net	57
Ending balance - March 31, 2023	$ 353

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Residential loan purchase commitments, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 liabilities still held included in net income	$ (6)	$ (14,442)
Point HEI Noncontrolling Interest
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 liabilities still held included in net income	0	(6,218)
Point Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	1,194	9,628
Held-for-investment at fair value | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	156	(35,397)
Held-for-investment at fair value | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	2,349	(4,981)
Held-for-investment at fair value | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	8,759	2,940
Business purpose loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	12,239	(14,647)
Consolidated Agency multifamily loans | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	363	264
Single family rental loans | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(8,810)	4,048
Trading Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	1,793	(1,401)
Available-for-sale securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(28)	0
HEIs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	3,433	1,185
Servicer Advance Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(1,352)	(3,081)
MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(424)	3,526
Excess MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(229)	(1,208)
Residential loan purchase commitments, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	353	2,050
Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	$ (94)	$ 0

Fair Value of Financial Instr_8

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - REO $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 2,820
Gain (Loss) on assets measured at fair value on a non-recurring basis	(183)
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	0
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 2,820

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ 1,077	$ 4,303
Total Market Valuation Gains (Losses), Net	11,270	(1,859)
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	12,107	1,293
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	6,994	(27,199)
Mortgage Banking Activities, Net | Residential loan purchase commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(239)	(41,623)
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	12,666	(24,468)
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	0	(725)
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	1,153	2,135
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	0	2,786
Mortgage Banking Activities, Net | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(8,467)	90,387
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(127)	(6,120)
Investment Fair Value Changes, Net | Trading securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,961	(4,242)
Investment Fair Value Changes, Net | Risk management derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(8,704)	1,973
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	183	(4,252)
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	1,376	(2,143)
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	(1,352)	(3,081)
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	(228)	(1,208)
Investment Fair Value Changes, Net | Legacy Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(94)	(714)
Investment Fair Value Changes, Net | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	2,442	(3,822)
Investment Fair Value Changes, Net | Freddie Mac SLST
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	8,934	3,036
Investment Fair Value Changes, Net | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	363	264
Investment Fair Value Changes, Net | CAFL
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(8,810)	4,048
Investment Fair Value Changes, Net | Point Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	425	3,411
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	3,840	1,192
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	(435)	123
Investment Fair Value Changes, Net | Credit losses on AFS securities, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(28)	(705)
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	(710)	2,968
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	(590)	2,968
Other Income | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ (120)	$ 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)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / loan	Dec. 31, 2022 USD ($)
Assets
ABS issued, net, At fair value | $	$ 7,968,135,000	$ 7,424,132,000
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | HEI
Liabilities
Fair value of securities owned | $	13,000,000
ABS Issued
Liabilities
ABS issued | $	$ 3,739,429,000
ABS Issued | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.04
ABS Issued | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.18
ABS Issued | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
ABS Issued | Default rate | Minimum
Liabilities
ABS issued, measurement input	0
ABS Issued | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.13
ABS Issued | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.01
ABS Issued | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.25
ABS Issued | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.50
ABS Issued | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.29
ABS Issued | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.05
ABS Issued | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.59
ABS Issued | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.08
CAFL
Liabilities
ABS issued | $	$ 2,593,192,000
CAFL | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0
CAFL | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.17
CAFL | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
CAFL | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.05
CAFL | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.16
CAFL | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.08
CAFL | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.30
CAFL | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.40
CAFL | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.31
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.001
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,143,522,000
Freddie Mac SLST | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.05
Freddie Mac SLST | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.16
Freddie Mac SLST | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.05
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.13
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.14
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.14
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.07
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.06
Freddie Mac K-Series
Liabilities
ABS issued | $	$ 394,469,000
Freddie Mac K-Series | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.03
Freddie Mac K-Series | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.10
Freddie Mac K-Series | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.05
Consolidated Point Entities
Liabilities
ABS issued | $	$ 97,523,000
Consolidated Point Entities | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.14
Consolidated Point Entities | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.20
Consolidated Point Entities | Home price appreciation (depreciation) | Minimum
Liabilities
ABS issued, measurement input	(0.07)
Consolidated Point Entities | Home price appreciation (depreciation) | Maximum
Liabilities
ABS issued, measurement input	0.04
Consolidated Point Entities | Home price appreciation (depreciation) | Weighted Average
Liabilities
ABS issued, measurement input	0.03
Jumbo fixed-rate loans
Assets
ABS issued, net, At fair value | $	$ 26,975,000
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0112
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0112
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0112
Jumbo fixed-rate loans | Seasoned whole loan dollar price | Minimum
Assets
Loans held-for-sale, measurement input	91
Jumbo fixed-rate loans | Seasoned whole loan dollar price | Maximum
Assets
Loans held-for-sale, measurement input	91
Jumbo fixed-rate loans | Seasoned whole loan dollar price | Weighted Average
Assets
Loans held-for-sale, measurement input	91
Legacy Sequoia
Assets
Loans receivable, fair value | $	$ 170,000,000
Sequoia
Assets
Loans receivable, fair value | $	3,831,538,000
Liabilities
Fair value of securities owned | $	261,000,000
Freddie Mac SLST
Assets
Loans receivable, fair value | $	1,464,345,000
Liabilities
Fair value of securities owned | $	323,000,000	323,000,000
BPL term loans
Assets
Loans receivable, fair value | $	$ 354,166,000
BPL term loans | Senior credit spread | Minimum
Assets
Loans receivable, measurement input	0.0180
BPL term loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0180
BPL term loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0180
BPL term loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0240
BPL term loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.0600
BPL term loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0337
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	0.07
BPL term loans | IO discount rate | Maximum
Assets
Loans receivable, measurement input	0.13
BPL term loans | IO discount rate | Weighted Average
Assets
Loans receivable, measurement input	0.10
BPL term loans | Whole loan spread to treasury rate | Minimum
Assets
Loans receivable, measurement input	0.0325
BPL term loans | Whole loan spread to treasury rate | Maximum
Assets
Loans receivable, measurement input	0.0550
BPL term loans | Whole loan spread to treasury rate | Weighted Average
Assets
Loans receivable, measurement input	0.0441
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
CAFL
Assets
Loans receivable, fair value | $	$ 2,891,043,000
Liabilities
Fair value of securities owned | $	295,000,000	$ 304,000,000
BPL bridge loans
Assets
Loans receivable, fair value | $	$ 2,119,440
BPL bridge loans | Senior credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0280
BPL bridge loans | Senior credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.0280
BPL bridge loans | Senior credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0280
BPL bridge loans | Subordinate credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0335
BPL bridge loans | Subordinate credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.1150
BPL bridge loans | Subordinate credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0654
BPL bridge loans | Senior credit support | Minimum
Assets
Loans held-for-investment, measurement input	0.43
BPL bridge loans | Senior credit support | Maximum
Assets
Loans held-for-investment, measurement input	0.43
BPL bridge loans | Senior credit support | Weighted Average
Assets
Loans held-for-investment, measurement input	0.43
BPL bridge loans | Whole loan discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.05
BPL bridge loans | Whole loan discount rate | Maximum
Assets
Loans held-for-investment, measurement input	0.15
BPL bridge loans | Whole loan discount rate | Weighted Average
Assets
Loans held-for-investment, measurement input	0.10
Freddie Mac K-Series
Assets
Loans receivable, fair value | $	$ 426,599,000
Liabilities
Fair value of securities owned | $	32,000,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 243,346,000
Trading and AFS securities | CRT dollar price | Minimum
Assets
Trading and AFS securities	64
Trading and AFS securities | CRT dollar price | Maximum
Assets
Trading and AFS securities	96
Trading and AFS securities | CRT dollar price | Weighted Average
Assets
Trading and AFS securities	87
Trading and AFS securities | Whole loan discount rate | Minimum
Assets
Trading and AFS securities	0.05
Trading and AFS securities | Whole loan discount rate | Maximum
Assets
Trading and AFS securities	0.18
Trading and AFS securities | Whole loan discount rate | Weighted Average
Assets
Trading and AFS securities	0.10
Trading and AFS securities | Default rate | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Default rate | Maximum
Assets
Trading and AFS securities	0.12
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities	0.005
Trading and AFS securities | Loss severity | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Loss severity | Maximum
Assets
Trading and AFS securities	0.50
Trading and AFS securities | Loss severity | Weighted Average
Assets
Trading and AFS securities	0.25
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities	0.05
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities	0.65
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities	0.09
HEIs
Assets
HEIs | $	$ 287,466,000
HEIs | Whole loan discount rate | Minimum
Assets
HEIs, Measurement input	0.10
HEIs | Whole loan discount rate | Maximum
Assets
HEIs, Measurement input	0.10
HEIs | Whole loan discount rate | Weighted Average
Assets
HEIs, Measurement input	0.10
HEIs | Prepayment rate (annual CPR) | Minimum
Assets
HEIs, Measurement input	0.01
HEIs | Prepayment rate (annual CPR) | Maximum
Assets
HEIs, Measurement input	0.23
HEIs | Prepayment rate (annual CPR) | Weighted Average
Assets
HEIs, Measurement input	0.16
HEIs | Home price appreciation (depreciation) | Minimum
Assets
HEIs, Measurement input	(0.07)
HEIs | Home price appreciation (depreciation) | Maximum
Assets
HEIs, Measurement input	0.04
HEIs | Home price appreciation (depreciation) | Weighted Average
Assets
HEIs, Measurement input	0.03
HEIs held by Point HEI entity
Assets
HEIs | $	$ 129,317,000
Servicer Advance Investments
Assets
Servicing asset | $	$ 260,378,000
Servicer Advance Investments | Minimum
Assets
Expected remaining life	5 years
Servicer Advance Investments | Maximum
Assets
Expected remaining life	6 years
Servicer Advance Investments | Weighted Average
Assets
Expected remaining life	5 years
Servicer Advance Investments | Whole loan discount rate | Minimum
Assets
Servicing asset, measurement input	0.02
Servicer Advance Investments | Whole loan discount rate | Maximum
Assets
Servicing asset, measurement input	0.04
Servicer Advance Investments | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.03
Servicer Advance Investments | Mortgage servicing income | Minimum
Assets
Servicing asset, measurement input	0
Servicer Advance Investments | Mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0018
Servicer Advance Investments | Mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0003
Servicer Advance Investments | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.14
Servicer Advance Investments | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.30
Servicer Advance Investments | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.14
MSRs
Assets
Servicing asset | $	$ 24,831,000
MSRs | Whole loan discount rate | Minimum
Assets
Servicing asset, measurement input	0.11
MSRs | Whole loan discount rate | Maximum
Assets
Servicing asset, measurement input	0.53
MSRs | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.11
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing asset, measurement input	93
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing asset, measurement input	93
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing asset, measurement input	93
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.04
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.27
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.08
Excess MSRs
Assets
Servicing asset | $	$ 38,807,000
Excess MSRs | Whole loan discount rate | Minimum
Assets
Servicing asset, measurement input	0.13
Excess MSRs | Whole loan discount rate | Maximum
Assets
Servicing asset, measurement input	0.19
Excess MSRs | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.18
Excess MSRs | Excess mortgage servicing amount | Minimum
Assets
Servicing asset, measurement input	0.0008
Excess MSRs | Excess mortgage servicing amount | Maximum
Assets
Servicing asset, measurement input	0.0019
Excess MSRs | Excess mortgage servicing amount | Weighted Average
Assets
Servicing asset, measurement input	0.0011
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.10
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	1
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.17
Residential loan purchase commitments
Liabilities
Loan purchase commitments, net | $	$ 359,000
Residential loan purchase commitments | Whole loan spread to swap rate | Minimum
Assets
Loans receivable, measurement input	0.0112
Residential loan purchase commitments | Whole loan spread to swap rate | Maximum
Assets
Loans receivable, measurement input	0.0137
Residential loan purchase commitments | Whole loan spread to swap rate | Weighted Average
Assets
Loans receivable, measurement input	0.0125
Residential loan purchase commitments | Pull-through rate | Minimum
Assets
Loans receivable, measurement input	0.36
Residential loan purchase commitments | Pull-through rate | Maximum
Assets
Loans receivable, measurement input	1
Residential loan purchase commitments | Pull-through rate | Weighted Average
Assets
Loans receivable, measurement input	0.69
Residential loan purchase commitments | Committed sales price | Minimum
Assets
Loans receivable, measurement input	99
Residential loan purchase commitments | Committed sales price | Maximum
Assets
Loans receivable, measurement input	103
Residential loan purchase commitments | Committed sales price | Weighted Average
Assets
Loans receivable, measurement input	101

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
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]	$ 26,975	$ 780,781
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		170,000	184,932
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		3,831,538	3,190,417
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		1,464,345	1,457,058
Servicer advance investments
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		5,492,858	5,613,188
Servicer advance investments | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		170,000	184,932
Servicer advance investments | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,831,538	3,190,417
Servicer advance investments | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,464,345	1,457,058
Servicer advance investments | 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		26,975	780,781
Servicer advance investments | 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
Servicer advance investments | 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
Servicer advance investments | 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
Servicer advance investments | 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		5,465,883	4,832,407
Servicer advance investments | 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		170,000	184,932
Servicer advance investments | 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		3,831,538	3,190,417
Servicer advance investments | 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		1,464,345	1,457,058
Servicer advance investments | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		26,975	780,781
Servicer advance investments | 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		26,975	780,781
Servicer advance investments | Redwood | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($)
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights, at amortized cost	$ 22

Residential Loans - Characteris

Residential Loans - Characteristics of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	39	994
Unpaid principal balance	$ 27,935	$ 822,063
Fair value of loans	26,975	780,781
Market value of loans pledged as collateral under short-term borrowing agreements	$ 26,282	$ 775,545
Weighted average coupon (as a percent)	6.24%	5.12%
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]
Number of loans with 90+ day delinquencies | loan	2	1
Unpaid principal balance of loans with 90+ day delinquencies	$ 650	$ 208
Fair value of loans with 90+ day delinquencies	$ 576	$ 170

Residential Loans - Quarterly A

Residential Loans - Quarterly Activity of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) securitization	Mar. 31, 2022 USD ($) securitization
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 53,046	$ 2,115,191
Principal balance of loans sold	173,153	1,827,364
Principal balance of loans transferred to HFI	657,295	687,192
Net market valuation gains (losses) recorded	7,178	(31,451)
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 0	$ 102,000
Number of seasoned securities | securitization	0	3

Residential Loans - Character_2

Residential Loans - Characteristics of Loans Held-for-Investment (Details) - Held-for-investment at fair value $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,222	1,304
Unpaid principal balance	$ 189,757	$ 204,404
Fair value of loans	$ 170,000	$ 184,932
Weighted average coupon (as a percent)	5.57%	4.51%
Number of loans in foreclosure | loan	10	11
Unpaid principal balance of loans in foreclosure	$ 2,336	$ 1,166
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	5,287	4,624
Unpaid principal balance	$ 4,449,021	$ 3,847,091
Fair value of loans	$ 3,831,538	$ 3,190,417
Weighted average coupon (as a percent)	3.56%	3.25%
Number of loans in foreclosure | loan	3	5
Unpaid principal balance of loans in foreclosure	$ 2,308	$ 4,654
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	10,748	10,882
Unpaid principal balance	$ 1,695,479	$ 1,719,236
Fair value of loans	$ 1,464,345	$ 1,457,058
Weighted average coupon (as a percent)	4.50%	4.50%
Number of loans in foreclosure | loan	418	427
Unpaid principal balance of loans in foreclosure	$ 74,676	$ 72,440
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	26	30
Fair value of loans with 90+ day delinquencies	$ 5,856	$ 6,824
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	7	10
Fair value of loans with 90+ day delinquencies	$ 5,147	$ 7,799
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	1,033	1,211
Fair value of loans with 90+ day delinquencies	$ 174,559	$ 209,397

Residential Loans - Quarterly_2

Residential Loans - Quarterly Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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	$ 873,093	$ 1,098,459
Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	61,867	(270,731)
Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	32,437	(43,768)
Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss)	(463)	6,325
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	$ 657,295	$ 684,491

Business Purpose Loans - Classi

Business Purpose Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate amount, amount with original maturity of thirty years (as a percent)	1%
LIBOR
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	35%
SOFR
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	57%
Fixed Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	8%
Commitment To Fund Residential Bridge Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commitment to fund loan	$ 811,000
Bridge Loans | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)	6 months
Bridge Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)	36 months
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 371,385	$ 364,073
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,993,264	4,968,513
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	5,364,649	5,332,586
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	354,166	358,791
Redwood | Single Family Rental Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
Redwood | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	354,166	358,791
Redwood | Residential Bridge, Held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	17,219	5,282
Redwood | Business Purpose loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,616,610	1,507,146
Redwood | BPL bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,633,829	1,512,428
CAFL | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CAFL | Single Family Rental Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	2,891,043	2,944,984
CAFL | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	2,891,043	2,944,984
CAFL | Bridge Loans, Held-For-Sale At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0	0
CAFL | Bridge Loans Held For Investment At Fair Value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	485,611	516,383
CAFL | Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 485,611	$ 516,383

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023 USD ($) loan	Mar. 31, 2022 USD ($)	Jun. 30, 2022 USD ($) loan	Dec. 31, 2022 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	$ 55,824	$ 2,197,570
Principal balance of loans sold to third parties	255	23,050
Fair value of loans transferred	873,093	1,098,459
Single-family rental loans, held-for-sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	174,078	442,727
Principal balance of loans acquired	3,815	61,892
Principal balance of loans sold to third parties	217,702	331,502
Fair value of loans transferred	0	0
Gain (loss) on investments	0	0
Fair value of loans	354,166			$ 358,791
Single-family rental loans, held-for-sale | Redwood | Total residential mortgage banking activities, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	12,666	(24,468)
Business Purpose loans held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	255,152	411,938
Principal balance of loans acquired	9,085	2,983
Principal balance of loans sold to third parties	12,547	0
Fair value of loans transferred	80,792	82,291
Gain (loss) on investments	1,609	(759)
Fair value of loans	1,616,610			1,507,146
Business Purpose loans held-for-investment | Redwood | Total residential mortgage banking activities, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	1,162	2,375
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	5,364,649			5,332,586
Single Family Rental Loans Held For Investment At Fair Value | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	0			0
Single Family Rental Loans Held For Investment At Fair Value | CAFL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	$ 37,179	(191,903)
Number of loans | loan	1,094		1,131
Unpaid principal balance	$ 3,172,026			3,263,421
Fair value of loans	$ 2,891,043			$ 2,944,984
Weighted average coupon rate (as a percent)	5.21%			5.22%
Weighted average remaining loan term (years)	5 years		6 years
Fair value of loans with 90+ day delinquencies	$ 9,378			$ 13,686
Number of loans in foreclosure | loan	8			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	19			16
Fair value of loans with 90+ day delinquencies	$ 60,740			$ 37,072
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	$ (592)	$ (1,384)
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	94		91
Unpaid principal balance	$ 349,190			389,846
Fair value of loans	$ 354,166			$ 358,791
Weighted average coupon rate (as a percent)	6.98%			5.98%
Weighted average remaining loan term (years)	9 years		10 years
Fair value of loans with 90+ day delinquencies	$ 536			$ 536
Number of loans in foreclosure | loan	1			1
Unpaid principal balance of loans in foreclosure	$ 536			$ 536
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	345,080		$ 291,406
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	0		$ 66,567
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	$ 1,157			$ 536
Number of loans with 90+ day delinquencies | loan	2			1
Fair value of loans with 90+ day delinquencies	$ 1,566			$ 536
Business Purpose Bridge Loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,473		1,601
Unpaid principal balance	$ 1,636,460			1,518,427
Fair value of loans	$ 1,633,829			$ 1,512,428
Weighted average coupon rate (as a percent)	10.20%			9.61%
Weighted average remaining loan term (years)	1 year		2 years
Fair value of loans with 90+ day delinquencies	$ 31,446			$ 34,039
Number of loans in foreclosure | loan	52			48
Unpaid principal balance of loans in foreclosure	$ 27,308			$ 29,438
Business Purpose Bridge Loans | 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	675,971		$ 579,666
Business Purpose Bridge Loans | 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	922,296		$ 897,782
Business Purpose Bridge Loans | 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	$ 28,387			$ 29,663
Number of loans with 90+ day delinquencies | loan	53			49
Fair value of loans with 90+ day delinquencies	$ 32,526			$ 34,264
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	1,796		1,875
Unpaid principal balance	$ 484,124			514,666
Fair value of loans	$ 485,611			$ 516,383
Weighted average coupon rate (as a percent)	10.41%			9.67%
Weighted average remaining loan term (years)	1 year		1 year
Fair value of loans with 90+ day delinquencies	$ 7,628			$ 7,328
Number of loans in foreclosure | loan	49			48
Unpaid principal balance of loans in foreclosure	$ 7,628			$ 7,438
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	$ 11,416			$ 7,438
Number of loans with 90+ day delinquencies | loan	51			48
Fair value of loans with 90+ day delinquencies	$ 11,416			$ 7,328

Consolidated Agency Multifami_3

Consolidated Agency Multifamily Loans (Details) - Consolidated Agency multifamily loans, at fair value $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) loan	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) loan
Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss) | $	$ 4,160	$ (19,681)
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 | $	$ 445,080		$ 447,193
Fair value of loans | $	$ 426,599		$ 424,551
Weighted average coupon rate (as a percent)	4.25%		4.25%
Weighted average remaining loan term (years)	2 years		3 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

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Trading		$ 108,366	$ 108,329
Available-for-sale		134,980	132,146
Total Real Estate Securities	[1]	$ 243,346	$ 240,475
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 108,366		$ 108,329
Unpaid principal balance	211,496		215,592
Fair value of securities acquired	1,700	$ 5,006
Fair value of securities sold	3,509	0
Net market valuation gains (losses) recorded	1,961	$ (1,456)
Senior Securities [Member]
Investment Holdings [Line Items]
Real estate securities, at fair value	31,297		28,867
Unpaid principal balance	0		0
Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	77,069		79,462
Unpaid principal balance	211,496		215,592
Interest Only Senior Trading Securities | Senior Securities [Member]
Investment Holdings [Line Items]
Real estate securities, at fair value	31,297		28,867
Interest Only Senior Trading Securities | Senior Securities [Member] | Sequoia
Investment Holdings [Line Items]
Real estate securities, at fair value	26,000		26,000
RPL securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	28,689		29,002
Consolidated Agency multifamily loans, at fair value | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	4,979		5,027
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 43,401		$ 45,433

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Investment Holdings [Line Items]
Available-for-sale	$ 134,980		$ 132,146
Fair value of securities acquired	0	$ 10,000
Fair value of securities sold	2,678	0
Principal balance of securities called	0	14,486
Net unrealized gain (loss) on available-for-sale securities	5,007	$ (17,873)
Sequoia securities
Investment Holdings [Line Items]
Available-for-sale	77,714		74,367
Consolidated Agency multifamily loans, at fair value
Investment Holdings [Line Items]
Available-for-sale	7,670		7,647
Other third-party residential securities
Investment Holdings [Line Items]
Available-for-sale	49,596		50,132
Total Subordinate Investment Securities
Investment Holdings [Line Items]
Available-for-sale	$ 134,980		$ 132,146

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) investment	Dec. 31, 2022 USD ($) investment
Investment Holdings [Line Items]
Number of AFS securities (in investments) | investment	78	79
Number of securities in unrealized loss position | investment	37	38
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | investment	6	1
Gross unrealized losses	$ 10,742	$ 13,127
CECL credit allowance	2,568	2,540
Residential
Investment Holdings [Line Items]
AFS securities, contractual maturities, less than five years	4,000
Marketable securities, due from five to ten years	1,000
CECL credit allowance	$ 28,208	$ 28,739

Real Estate Securities - Compon

Real Estate Securities - Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Principal balance	$ 217,059	$ 221,933
Credit reserve	(28,208)	(28,739)
Unamortized discount, net	(59,334)	(61,650)
Amortized cost	129,517	131,544
Gross unrealized gains	18,773	16,269
Gross unrealized losses	(10,742)	(13,127)
CECL allowance	(2,568)	(2,540)
Carrying Value	$ 134,980	$ 132,146

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Credit Reserve
Beginning balance	$ 2,540
Sales, calls, other	0
Ending Balance	2,568
Unamortized Discount, Net
Beginning balance	61,650
Ending Balance	59,334
Residential
Credit Reserve
Beginning balance	28,739
Amortization of net discount	0
Realized credit recoveries (losses), net	(48)
Acquisitions	0
Sales, calls, other	(206)
Transfers to (release of) credit reserves, net	(277)
Ending Balance	28,208
Unamortized Discount, Net
Beginning balance	61,650
Amortization of net discount	(263)
Realized credit recoveries (losses), net	0
Acquisitions	0
Sales, calls, other	(2,330)
Transfers to (release of) credit reserves, net	277
Ending Balance	$ 59,334

Real Estate Securities - Comp_2

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months, Fair Value	$ 47,384	$ 72,679
Less Than 12 Consecutive Months, Unrealized Losses	(7,927)	(12,940)
12 Consecutive Months or Longer, Fair Value	28,285	1,414
12 Consecutive Months or Longer, Unrealized Losses	$ (2,815)	$ (186)

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss (Details) - Subordinate Securities	3 Months Ended
	Mar. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Default rate	0.80%
Loss severity	20%

Real Estate Securities - Activi

Real Estate Securities - Activity of Allowance for Credit Losses for Available-for-sale Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Rollforward of Allowance for Credit Losses
Beginning balance	$ 2,540
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	99
Additional increases (or decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	(71)
Allowance on purchased financial assets with credit deterioration	0
Reduction to allowance for securities sold during the period	0
Reduction to allowance for securities we intend to sell or more likely than not will be required to sell	0
Write-offs charged against allowance	0
Recoveries of amounts previously written off	0
Ending Balance	$ 2,568

Real Estate Securities - Gross

Real Estate Securities - Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 527	$ 1,914
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	527	0
Gross realized losses - sales	0	0
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 0	$ 1,914

Home Equity Investments (HEI) -

Home Equity Investments (HEI) - Schedule of Home Equity Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 416,783	$ 403,462
HEIs | Redwood
Schedule of Equity Method Investments [Line Items]
Home equity investments	287,466	270,835
HEIs | HEI held at consolidated HEI securitization entity
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 129,317	$ 132,627

Home Equity Investments (HEI)_2

Home Equity Investments (HEI) - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($)
Commitment To Acquire HEIs
Schedule of Equity Method Investments [Line Items]
Cumulative commitment	$ 8

Home Equity Investments (HEI)_3

Home Equity Investments (HEI) - Activity of HEI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Equity Method Investments [Line Items]
Net market valuation gains	$ 1,068	$ 5,731
Redwood
Schedule of Equity Method Investments [Line Items]
Net market valuation gains	3,840	1,192
Home Equity Investments Purchased, Fair Value
Schedule of Equity Method Investments [Line Items]
Net market valuation gains	0	0
Home Equity Investments Purchased, Fair Value | Redwood
Schedule of Equity Method Investments [Line Items]
Net market valuation gains	$ 16,559	$ 40,141

Home Equity Investments (HEI)_4

Home Equity Investments (HEI) - HEI Characteristics (Details) $ in Thousands	Mar. 31, 2023 USD ($) Contract	Dec. 31, 2022 USD ($) Contract
HEIs
Schedule of Equity Method Investments [Line Items]
Number of HEI contracts | Contract	2,695	2,599
Average initial amount of contract | $	$ 101	$ 101
Securitized HEI
Schedule of Equity Method Investments [Line Items]
Number of HEI contracts | Contract	984	1,007
Average initial amount of contract | $	$ 94	$ 94

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Net Investment Income [Line Items]
Other Investments	[1]	$ 381,690	$ 390,938
Mortgage servicing rights
Net Investment Income [Line Items]
Mortgage servicing rights		24,831	25,421
Other
Net Investment Income [Line Items]
Other		277	705
Servicer advance investments
Net Investment Income [Line Items]
Mortgage servicing rights		260,378	269,259
Strategic investments
Net Investment Income [Line Items]
Mortgage servicing rights		57,397	56,518
Excess MSRs
Net Investment Income [Line Items]
Mortgage servicing rights		$ 38,807	$ 39,035
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) partnership investment	Mar. 31, 2022 USD ($)	Dec. 31, 2018 partnership	Dec. 31, 2022 USD ($)
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership	2		2
Collateral amounts	$ 1,414,099			$ 1,379,856
Investment fair value changes, net	(127)	$ (6,120)
Investments	6,000
Other income, net	4,556	5,983
Interest income	178,516	189,400
MSR income, net	1,077	$ 4,303
Strategic investments
Net Investment Income [Line Items]
Investment fair value changes, net	0
Other income, net	$ (20)
Strategic investments | RWT Horizons
Net Investment Income [Line Items]
Number of investments made | investment	31
Investments	$ 23,000
Strategic investments | Churchill Finance
Net Investment Income [Line Items]
Number of investments made | investment	6,000
MSRs
Net Investment Income [Line Items]
Mortgage servicing rights	$ 24,831			25,421
Aggregate principal balance	2,150,000			2,190,000
Servicer advance financing
Net Investment Income [Line Items]
Collateral amounts	233,000
Equity investment income	5,000
Investment fair value changes, net	(1,000)
Held-for-sale residential loans
Net Investment Income [Line Items]
Mortgage servicing rights	260,378			269,259
Servicing asset, unpaid principal balance on underlying loan	11,060,000
Excess MSRs
Net Investment Income [Line Items]
Mortgage servicing rights	38,807			$ 39,035
Investment fair value changes, net	(200)
Interest income	4,000
Fair value option elected aggregate carrying amount, asset	$ 0

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Investments [Line Items]
Total Servicer Advance Receivables	$ 232,835	$ 240,365
Servicer advance financing
Schedule of Investments [Line Items]
Principal and interest advances	78,803	81,447
Escrow advances (taxes and insurance advances)	118,561	123,541
Corporate advances	$ 35,471	$ 35,377

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Fair Value	$ 761	$ 3,975
Notional Amount	906,488	1,772,298
TBAs
Derivative [Line Items]
Notional Amount	330,000	1,070,000
Interest rate futures
Derivative [Line Items]
Notional Amount	290,000	411,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(10,736)	(16,855)
Notional Amount	412,674	908,532
Derivative Liabilities | TBAs
Derivative [Line Items]
Fair Value	(3,018)	(16,784)
Notional Amount	135,000	845,000
Derivative Liabilities | Interest rate futures
Derivative [Line Items]
Fair Value	(7,712)	(57)
Notional Amount	270,500	60,000
Derivative Liabilities | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	(6)	(14)
Notional Amount	7,174	3,532
Derivative Assets
Derivative [Line Items]
Fair Value	11,497	20,830
Notional Amount	493,814	863,766
Derivative Assets | Interest rate swaps
Derivative [Line Items]
Fair Value	8,032	14,625
Notional Amount	240,000	285,000
Derivative Assets | TBAs
Derivative [Line Items]
Fair Value	3,037	1,893
Notional Amount	195,000	220,000
Derivative Assets | Interest rate futures
Derivative [Line Items]
Fair Value	75	3,976
Notional Amount	19,000	350,600
Derivative Assets | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	353	336
Notional Amount	$ 39,814	$ 8,166

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional amount	$ 906,488		$ 1,772,298
Accumulated other comprehensive income (loss)	1,137,680	$ 1,445,266	1,083,985	$ 1,386,087
Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(71,285)	(75,412)	(72,303)	$ (76,430)
Cash Flow Hedging | Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(71,000)		(72,000)
Interest Expense | Cash Flow Hedging
Derivative [Line Items]
Expected amortization of realized losses related to terminated cash flow hedges	4,000
Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	12,107	1,293
Loan purchase commitments and forward sales commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	200	(42,000)
Interest Rate Swap And Swaptions
Derivative [Line Items]
Notional amount	240,000
TBAs
Derivative [Line Items]
Notional amount	330,000		1,070,000
Interest rate futures
Derivative [Line Items]
Notional amount	290,000		411,000
Interest rate contract
Derivative [Line Items]
Notional amount			$ 285,000
Interest rate contract | Cash Flow Hedging
Derivative [Line Items]
realized net losses from accumulated comprehensive loss into Interest expense	(1,000)
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Derivative gain (loss)	$ 17,000	$ 92,000

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest receivable		$ 61,397	$ 60,893
Investment receivable		45,372	36,623
Deferred tax asset		41,931	41,931
Margin receivable		17,079	13,802
Operating lease right-of-use assets		15,297	16,177
REO		13,095	6,455
Fixed assets and leasehold improvements		9,292	12,616
Income tax receivables		3,047	3,399
Other		25,711	19,344
Total Other Assets	[1]	232,221	$ 211,240
Fixed assets		18,000
Accumulated depreciation		$ 9,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, 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		Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest payable		$ 51,321	$ 46,612
Payable to noncontrolling interests		46,203	44,859
Accrued compensation		20,148	30,929
Operating lease liabilities		17,638	18,563
Guarantee obligations		6,223	6,344
Residential loan and MSR repurchase reserve		5,858	7,051
Accrued operating expenses		5,696	5,740
Current accounts payable		3,162	4,234
Bridge loan holdbacks		2,953	3,301
Margin payable		2,558	5,944
Unsettled trades		1,704	0
Preferred stock dividends payable		1,419	0
Other		11,388	6,626
Accrued expenses and other liabilities	[1]	$ 176,271	$ 180,203
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - REO Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) asset	Dec. 31, 2022 asset
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 6,455
Amount related to transfers into REO	8,014
Liquidations	(1,356)
Unrealized gain (loss) resulting from market valuation adjustments on REO	(18)
Balance at End of Period	13,095
Realized loss from liquidation	$ 100
Number of REO properties recorded on balance sheet | asset	30	28
Legacy Sequoia
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 544
Amount related to transfers into REO	18
Liquidations	(544)
Unrealized gain (loss) resulting from market valuation adjustments on REO	0
Balance at End of Period	$ 18
Number of REO properties recorded on balance sheet | asset	1	2
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 2,899
Amount related to transfers into REO	381
Liquidations	(812)
Unrealized gain (loss) resulting from market valuation adjustments on REO	174
Balance at End of Period	$ 2,642
Number of REO properties recorded on balance sheet | asset	25	24
CAFL
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 0
Amount related to transfers into REO	0
Liquidations	0
Unrealized gain (loss) resulting from market valuation adjustments on REO	0
Balance at End of Period	$ 0
Number of REO properties recorded on balance sheet | asset	0	0
BPL bridge loans
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 3,012
Amount related to transfers into REO	7,615
Liquidations	0
Unrealized gain (loss) resulting from market valuation adjustments on REO	(192)
Balance at End of Period	$ 10,435
Number of REO properties recorded on balance sheet | asset	4	2

Other Assets and Liabilities _4

Other Assets and Liabilities - Additional Information (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) partnership	Mar. 31, 2022 USD ($)	Dec. 31, 2018 partnership
Other Assets and Other Liabilities [Line Items]
Number of partnerships consolidated | partnership	2		2
Co-investors gains (losses)	$ 1	$ 1
Co-Investors Interests
Other Assets and Other Liabilities [Line Items]
Carrying value of interests	23
Point HEI Noncontrolling Interest
Other Assets and Other Liabilities [Line Items]
Carrying value of interests	23
Co-investors gains (losses)	$ 1	$ 6

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		3 Months Ended	12 Months Ended
		Mar. 31, 2023 USD ($) facility	Dec. 31, 2022 USD ($) facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 1,616,452,000	$ 2,029,679,000
Facilities
Short-term Debt [Line Items]
Number of Facilities | facility		18	19
Outstanding Balance		$ 1,253,277,000	$ 1,620,096,000
Facilities | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		6	7
Outstanding Balance		$ 25,590,000	$ 703,406,000
Limit		$ 1,750,000,000	$ 2,550,000,000
Weighted Average Interest Rate (as a percent)		6.83%	6.16%
Weighted Average Days Until Maturity		229 days	267 days
Facilities | Business purpose loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		4	4
Outstanding Balance		$ 777,067,000	$ 680,100,000
Limit		$ 1,650,000,000	$ 1,650,000,000
Weighted Average Interest Rate (as a percent)		7.31%	6.93%
Weighted Average Days Until Maturity		112 days	179 days
Facilities | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		7	7
Outstanding Balance		$ 325,549,000	$ 124,909,000
Limit		$ 0	$ 0
Weighted Average Interest Rate (as a percent)		6.11%	5.22%
Weighted Average Days Until Maturity		28 days	27 days
Facilities | HEI warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 125,071,000	$ 111,681,000
Limit		$ 150,000,000	$ 150,000,000
Weighted Average Interest Rate (as a percent)		9.39%	8.54%
Weighted Average Days Until Maturity		216 days	306 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 197,883,000	$ 206,510,000
Limit		$ 290,000,000	$ 290,000,000
Weighted Average Interest Rate (as a percent)		7.04%	6.67%
Weighted Average Days Until Maturity		215 days	305 days
Promissory notes
Short-term Debt [Line Items]
Outstanding Balance		$ 21,808,000	$ 27,058,000
Weighted Average Interest Rate (as a percent)		6.76%	6.64%
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance		$ 143,484,000	$ 176,015,000
Weighted Average Interest Rate (as a percent)		4.75%	4.75%
Weighted Average Days Until Maturity		137 days	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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, 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	Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Total collateral for financing	$ 2,013,399	$ 2,299,034
Facilities
Short-term Debt [Line Items]
Total real estate securities owned	461,938	178,070
Other assets	2,023	1,097
Total collateral for financing	1,726,811	2,017,062
Servicer advance financing
Short-term Debt [Line Items]
Total collateral for financing	286,588	281,972
Cash	17,329	12,713
Restricted cash	0	0
Servicer advances	269,259	269,259
Held-for-sale residential loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	26,282	775,545
Business purpose loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	1,021,051	871,072
HEI | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	215,517	191,278
On balance sheet | Facilities
Short-term Debt [Line Items]
Available-for-sale securities pledged as collateral	71,017	72,133
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	110,821	74,170
Freddie Mac SLST | Sequoia securities | Short Term Borrowing Agreement
Short-term Debt [Line Items]
Trading securities pledged as collateral	247,970	0
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 32,130	$ 31,767

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jul. 01, 2022
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,170
Accrued interest payable on short-term debt	7	$ 7
Convertible notes
Short-term Debt [Line Items]
Repurchased debt instrument, face amount	33
Gain (loss) on extinguishment of debt	0.1
Debt instrument, face amount	144
Riverbend Funding, LLC
Short-term Debt [Line Items]
Promissory notes			$ 43
Debt instrument, periodic payment, principal	5
Riverbend Funding, LLC | Minimum
Short-term Debt [Line Items]
Fixed interest rate (as a percentage)			6%
Riverbend Funding, LLC | 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	0.5
Unamortized capitalized commitment costs	$ 0.5

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Short-term debt	[1]	$ 1,616,452	$ 2,029,679
Within 30 days
Short-term Debt [Line Items]
Short-term debt		276,367
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		568,056
Over 90 days
Short-term Debt [Line Items]
Short-term debt		772,029
Facilities
Short-term Debt [Line Items]
Short-term debt		1,253,277	1,620,096
Facilities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		276,367
Facilities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		546,248
Facilities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		430,662
Facilities | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		25,590	703,406
Facilities | Held-for-sale residential loans | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Held-for-sale residential loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Held-for-sale residential loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		25,590
Facilities | Business purpose loans
Short-term Debt [Line Items]
Short-term debt		777,067
Facilities | Business purpose loans | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Business purpose loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		497,066
Facilities | Business purpose loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		280,001
Facilities | Real estate securities
Short-term Debt [Line Items]
Short-term debt		325,549
Facilities | Real estate securities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		276,367
Facilities | Real estate securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		49,182
Facilities | Real estate securities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | HEI warehouse
Short-term Debt [Line Items]
Short-term debt		125,071	111,681
Facilities | HEI warehouse | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | HEI warehouse | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | HEI warehouse | Over 90 days
Short-term Debt [Line Items]
Short-term debt		125,071
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		197,883	206,510
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		197,883
Promissory notes
Short-term Debt [Line Items]
Short-term debt		21,808	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		21,808
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		143,484	$ 176,015
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		$ 143,484
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_2

Asset-Backed Securities Issued - Components of Asset-Backed Securities Issued by Consolidated Securitization Entities Sponsored, Along With Other Selected Information (Details) - Asset-backed securities issued $ in Thousands	Mar. 31, 2023 USD ($) series	Dec. 31, 2022 USD ($) series
Debt Instrument [Line Items]
ABS Issued, Net	$ 8,447,119	$ 7,986,752
Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	(1,038,834)	(1,163,285)
Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	9,291,176	8,944,351
Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	194,777	205,686
Legacy Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 168,832	$ 184,191
Number of series | series	20	20
Legacy Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (16,273)	$ (16,036)
Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	3.09%	2.69%
Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	6.06%	5.19%
Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 184,937	$ 200,047
Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	168	180
Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,570,597	$ 2,971,109
Number of series | series	19	17
Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (642,289)	$ (682,477)
Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	2.60%	2.57%
Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	5.01%	6.13%
Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 4,155,846	$ 3,595,715
Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	57,040	57,871
CAFL
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,072,176	$ 3,115,807
Number of series | series	19	19
CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (275,083)	$ (331,371)
CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	2.34%	2.34%
CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)	6.39%	5.92%
CAFL | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,231,269	$ 3,322,250
CAFL | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	115,990	124,928
Freddie Mac SLST
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,143,522	$ 1,222,150
Range of weighted average interest rates, by series (as a percent)	3.50%
Number of series | series	2	3
Debt instrument, face amount		$ 86,000
Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (74,952)	$ (99,830)
Freddie Mac SLST | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)		3.50%
Freddie Mac SLST | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series (as a percent)		4.75%
Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	1,203,589	$ 1,306,652
Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	14,885	15,328
Freddie Mac K-Series
Debt Instrument [Line Items]
ABS Issued, Net	$ 394,469	$ 392,785
Range of weighted average interest rates, by series (as a percent)	3.41%	3.41%
Number of series | series	1	1
Freddie Mac K-Series | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (20,837)	$ (25,319)
Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	408,612	410,725
Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	6,694	7,379
HEI
Debt Instrument [Line Items]
ABS Issued, Net	$ 97,523	$ 100,710
Range of weighted average interest rates, by series (as a percent)	3.79%	3.78%
Number of series | series	1	1
HEI | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (9,400)	$ (8,252)
HEI | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	106,923	108,962
HEI | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	0	0
CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount	$ 485,000	$ 485,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Sep. 30, 2020	Dec. 31, 2052	May 29, 2029	Mar. 31, 2029	Jul. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Other assets	[1]	$ 232,221						$ 211,240
Restricted cash	[1]	$ 86,037						70,470
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
VIE, ownership interest rate (as a percent)		80%
Variable Interest Entity, Primary Beneficiary | Point HEI
Debt Instrument [Line Items]
ABS issued, net, At amortized cost										$ 146,000
Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, At amortized cost									$ 215,000
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST
Debt Instrument [Line Items]
ABS issued, net, At amortized cost			$ 210,000
2022 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		$ 215,000
Bridge loan		217,000
Restricted cash		34,000
2022 Asset Backed Securities Sold | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		220,000
Unamortized debt discount		5,000
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		485,000						485,000
Bridge loan		269,000
Other assets		14,000
Restricted cash		28,000
Total funding capacity		$ 250,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount								$ 86,000
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)		4.75%
VIE, ownership interest rate (as a percent)			100%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)				2%		2%	7.75%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		$ 269,000
Unamortized debt discount		$ 1,000
Debt Instrument interest rate (as a percent)		4.32%
Asset-backed securities issued | Contractual maturities of over five years
Debt Instrument [Line Items]
Contractual maturities of securities (in years)		5 years
2021 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		$ 270,000
Total funding capacity		$ 300,000
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 | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, At amortized cost										$ 270,000
Debt Instrument interest rate (as a percent)		2.34%
[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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_4

Asset-Backed Securities Issued - Accrued Interest Payable (Details) - Asset-backed securities issued - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 27,063	$ 24,808
Legacy Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	316	282
Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	11,259	8,880
CAFL
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	10,816	10,918
Freddie Mac SLST
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	3,510	3,561
Freddie Mac K-Series
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 1,162	$ 1,167

Long-Term Debt - Schedule of Co

Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Borrowings	$ 1,743,934,000	$ 1,746,145,000
Unamortized Deferred Issuance Costs / Discount	(10,906,000)	(12,720,000)
Net Carrying Value	1,733,028,000	1,733,425,000
Line of Credit
Debt Instrument [Line Items]
Borrowings	1,077,142,000	1,079,353,000
Unamortized Deferred Issuance Costs / Discount	(1,043,000)	(2,153,000)
Net Carrying Value	1,076,099,000	1,077,200,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Borrowings	139,500,000	139,500,000
Unamortized Deferred Issuance Costs / Discount	(721,000)	(733,000)
Net Carrying Value	$ 138,779,000	$ 138,767,000
Trust Preferred Securities and Subordinated Notes | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%	2.25%
Facility A | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 129,329,000	$ 130,408,000
Unamortized Deferred Issuance Costs / Discount	0	0
Net Carrying Value	$ 129,329,000	$ 130,408,000
Weighted Average Interest Rate (as a percent)	5.71%	5.71%
Facility B | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 101,691,000	$ 101,706,000
Unamortized Deferred Issuance Costs / Discount	0	(50,000)
Net Carrying Value	$ 101,691,000	$ 101,656,000
Weighted Average Interest Rate (as a percent)	5.71%	4.21%
Facility C | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 66,197,000	$ 68,995,000
Unamortized Deferred Issuance Costs / Discount	(63,000)	(125,000)
Net Carrying Value	$ 66,134,000	$ 68,870,000
Weighted Average Interest Rate (as a percent)	4.75%	4.75%
Facility D | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 427,310,000	$ 404,622,000
Unamortized Deferred Issuance Costs / Discount	(68,000)	(667,000)
Net Carrying Value	427,242,000	403,955,000
Limit	$ 750,000,000	$ 750,000,000
Facility D | Line of Credit | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.87%	2.87%
Facility E | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 305,159,000	$ 308,933,000
Unamortized Deferred Issuance Costs / Discount	(912,000)	(838,000)
Net Carrying Value	304,247,000	308,095,000
Limit	$ 335,000,000	$ 335,000,000
Facility E | Line of Credit | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.25%	3.25%
Facility F | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 0	$ 64,689,000
Unamortized Deferred Issuance Costs / Discount	0	(473,000)
Net Carrying Value	0	64,216,000
Limit	$ 500,000,000	$ 500,000,000
Facility F | Line of Credit | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%	2.25%
Facility F | Line of Credit | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%	2.50%
Facility G | Line of Credit
Debt Instrument [Line Items]
Borrowings	$ 47,456,000
Unamortized Deferred Issuance Costs / Discount	0
Net Carrying Value	47,456,000
Limit	$ 50,000,000
Facility G | Line of Credit | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.25%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200,000	$ 150,200,000
Unamortized Deferred Issuance Costs / Discount	(1,076,000)	(1,282,000)
Net Carrying Value	$ 149,124,000	$ 148,918,000
Weighted Average Interest Rate (as a percent)	5.625%	5.625%
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 162,092,000	$ 162,092,000
Unamortized Deferred Issuance Costs / Discount	(2,207,000)	(2,410,000)
Net Carrying Value	$ 159,885,000	$ 159,682,000
Weighted Average Interest Rate (as a percent)	5.75%	5.75%
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 215,000,000	$ 215,000,000
Unamortized Deferred Issuance Costs / Discount	(5,859,000)	(6,142,000)
Net Carrying Value	$ 209,141,000	$ 208,858,000
Weighted Average Interest Rate (as a percent)	7.75%	7.75%

Long-Term Debt - Schedule of _2

Long-Term Debt - Schedule of Collateral for Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Collateral amounts	$ 1,414,099	$ 1,379,856
BPL bridge loans
Debt Instrument [Line Items]
Collateral amounts	922,296	897,782
BPL term loans
Debt Instrument [Line Items]
Collateral amounts	0	66,567
Mortgage servicing rights
Debt Instrument [Line Items]
Collateral amounts	73,366	0
Commercial Real Estate | Facility A | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	181,897	178,439
Commercial Real Estate | Facility B | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	$ 236,540	$ 237,068

Long-Term Debt - Schedule of Ac

Long-Term Debt - Schedule of Accrued Interest Payable on Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 16,069	$ 11,966
Line of Credit
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 3,058	$ 3,364
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)	5.625%	5.625%
Total Accrued Interest Payable on Long-Term Debt	$ 1,784	$ 3,896
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)	5.75%	5.75%
Total Accrued Interest Payable on Long-Term Debt	$ 4,662	$ 2,332
Convertible notes | 7.75% convertible senior notes
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)	7.75%	7.75%
Total Accrued Interest Payable on Long-Term Debt	$ 4,906	$ 741
Trust Preferred Securities
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 1,659	$ 1,633

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2023	Dec. 31, 2022
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%
Recourse Revolving Debt Facility | Facilities
Debt Instrument [Line Items]
Limit				$ 50,000,000
Recourse Revolving Debt Facility | Facilities | SOFR
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)				3.25%
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)				7.75%	7.75%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)			3 Months Ended		12 Months Ended
		Jul. 01, 2022 USD ($)	Mar. 31, 2023 USD ($) lease loan repurchase_request tranche	Mar. 31, 2022 USD ($) repurchase_request loan	Dec. 31, 2021 USD ($)	Dec. 31, 2018 partnership	Dec. 31, 2022 USD ($) loan	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Loss Contingencies [Line Items]
Lessee, number of leases | lease			10
Present value of remaining lease payments			$ 19,981,000
Operating lease expense			$ 1,000,000	$ 1,000,000
Lessee, number of office leases | lease			1
Operating lease liabilities			$ 17,638,000				$ 18,563,000
Operating lease liability, statement of financial position [Extensible List]			Accounts Payable and Accrued Liabilities
Operating lease right-of-use assets			$ 15,297,000				16,177,000
Operating lease right-of-use asset, statement of financial position [Extensible List]			Other assets
Weighted average remaining lease term			5 years
Discount rate (as a percent)			5.20%
Derivative liabilities	[1]		$ 10,736,000				16,855,000
Market valuation adjustments			11,270,000	$ (1,859,000)
Number of partnerships, committed to fund | partnership						2
Guarantee obligations			6,223,000				6,344,000
Guarantee obligations, credit reserve			5,000,000
Special purpose entities assets			30,000,000				30,000,000
Special purpose entities liabilities			6,000,000				6,000,000
Residential repurchase reserve			5,858,000				7,051,000
Aggregate amount of loss contingency reserves			2,000,000
Riverbend Funding, LLC
Loss Contingencies [Line Items]
Earnout period		2 years
Potential future payments on loans		$ 25,300,000
Contingent consideration			0
Maximum
Loss Contingencies [Line Items]
Loss from arrangements			100,000
Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance			27,935,000				822,063,000
Fair value of loans			$ 26,975,000				$ 780,781,000
Number of loans in foreclosure | loan			0				0
Business Purpose Loans
Loss Contingencies [Line Items]
Residential repurchase reserve			$ 0				$ 1,000,000
Number of residential repurchase requests (in repurchase requests) | repurchase_request			4	0
Number of loans repurchased | loan			11	0
Repurchase request outstanding			$ 0				1,000,000
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement			200,000
Guarantee Obligations
Loss Contingencies [Line Items]
Potential future payments on loans			44,000,000
Original unpaid balance of loans subject to risk sharing agreements								$ 3,190,000,000	$ 3,190,000,000
Unpaid principal balance			$ 429,000,000
Weighted average original FICO score			759
Weighted average original loan-to-value (LTV)			74%
Guarantee Obligations | Residential Loans
Loss Contingencies [Line Items]
Number of loans in foreclosure | tranche			5
Unpaid principal balance of loans in foreclosure			$ 1,000,000
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Fair value of loans			9,000,000
Repurchase Reserves
Loss Contingencies [Line Items]
Residential repurchase reserve			$ 6,000,000				$ 6,000,000
Number of residential repurchase requests (in repurchase requests) | repurchase_request			1	0
Number of loans repurchased | loan			5	0
Residential loans repurchase (reversal) provision			$ 0	$ (200,000)
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Other commitments made			811,000,000
Derivative liabilities			(1,000,000)
Market valuation adjustments			400,000
Commitment To Acquire HEIs
Loss Contingencies [Line Items]
Cumulative commitment			8,000,000
Commitment To Fund Strategic Investment
Loss Contingencies [Line Items]
Other commitments made			15,000,000
Payments for other commitments				$ 25,000,000
Commitment To Fund RWT Horizons Investments
Loss Contingencies [Line Items]
Other commitments made			$ 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 March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (9 months)	$ 3,699
2024	4,554
2025	3,629
2026	3,520
2027	2,588
2028 and thereafter	1,991
Total Lease Commitments	19,981
Less: Imputed interest	(2,343)
Operating lease liabilities	$ 17,638	$ 18,563

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,083,985	$ 1,386,087
Total other comprehensive income (loss)	5,832	(17,547)
Balance at End of Period	1,137,680	1,445,266
Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	3,435	67,503
Other comprehensive income (loss) before reclassifications	5,007	(17,873)
Amounts reclassified from other accumulated comprehensive income (loss)	(193)	(692)
Total other comprehensive income (loss)	4,814	(18,565)
Balance at End of Period	8,249	48,938
Interest Rate Agreements Accounted for as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(72,303)	(76,430)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from other accumulated comprehensive income (loss)	1,018	1,018
Total other comprehensive income (loss)	1,018	1,018
Balance at End of Period	$ (71,285)	$ (75,412)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ (127)	$ (6,120)
Realized gains, net	2	(2,581)
Interest expense	152,079	136,298
Net income before provision for income taxes	3,497	28,457
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	28	705
Realized gains, net	(221)	(1,397)
Net income before provision for income taxes	(193)	(692)
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Agreements Accounted for as Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	1,018	1,018
Net income before provision for income taxes	$ 1,018	$ 1,018

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jul. 31, 2022
Stockholders Equity Note [Line Items]
Preferred stock, issued (in shares)		2,800,000		0
Gross proceeds from issuance of preferred stock		$ 66,923,000	$ 0
Preferred stock dividends declared (in dollars per share)		$ 0.60417
Share Repurchase Program 2022
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board					$ 125,000,000
Available authorization remaining for repurchase		$ 101,000,000
Convertible Debt Securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)		46,316,074
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)		28,474	17,154
Series A Preferred Stock
Stockholders Equity Note [Line Items]
Preferred stock, issued (in shares)	2,800,000
Sale of stock, percentage of ownership before transaction (in percent)	10%
Gross proceeds from issuance of preferred stock	$ 70,000,000
Net proceeds from issuance of common stock	$ 67,000,000
Preferred stock, dividend rate (in percent)	10%
Preferred stock, redemption price per share(in dollars per share)	$ 25
Spread on Treasury rate (as a percent)	6.278%
At The Market Offerings | Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)		0
Remaining capacity		$ 175,000,000
Direct Stock Purchases and Dividend Reinvestment Plan | Common Stock
Stockholders Equity Note [Line Items]
Shares remaining for future offerings		6,000,000
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)			5,232,869

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic Earnings per Common Share:
Net income available to common stockholders	$ 3,201	$ 30,915
Less: Dividends and undistributed earnings allocated to participating securities	(1,404)	(1,209)
Net income allocated to common stockholders	$ 1,797	$ 29,706
Basic weighted average common shares outstanding (in shares)	113,678,911	119,884,172
Basic Earnings per Common Share (in dollars per share)	$ 0.02	$ 0.25
Diluted Earnings per Common Share:
Net income available to common stockholders	$ 4,620	$ 30,915
Less: Dividends and undistributed earnings allocated to participating securities	(1,404)	(1,348)
Add back: Interest expense on convertible notes for the period, net of tax	0	4,582
Net income allocated to common stockholders	$ 1,797	$ 34,149
Net effect of dilutive equity awards (in shares)	455,645	290,831
Net effect of assumed convertible notes conversion to common shares (in shares)	0	20,331,154
Diluted weighted average common shares outstanding (in shares)	114,134,556	140,506,157
Diluted Earnings per Common Share (in dollars per share)	$ 0.02	$ 0.24

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 42,178	$ 40,188
Weighted average amortization period remaining for equity awards		2 years
Shares of common stock to be purchased in aggregate for all employees (in shares)		850,000
Number of shares purchased by employees (in shares)		686,251	657,777
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		703,499	806,119
Number of stock awards granted (in shares)		249,598,000
Number of stock awards vested (in shares)		336,959,000
Number of stock awards forfeited (in shares)		15,259,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		5,350,399	4,831,338
Number of stock awards granted (in shares)		746,592
Number of stock awards vested (in shares)		2,741,004	2,495,787
Number of stock awards forfeited (in shares)		0
Stock units distributed (in shares)		227,531
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		2,078,171	2,354,002
Number of stock awards granted (in shares)	275,831
Share-based compensation, vesting period (in years)		3 years
Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant (in shares)		2,634,034	2,896,604
Redwood Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 5,456	$ 5,068
Redwood Incentive Plan | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		22,869	19,849
Redwood Incentive Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 13,537	$ 15,271

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 40,188
Equity grants	8,354
Equity grant forfeitures	(174)
Equity compensation expense	(6,190)
Unrecognized Compensation Cost at End of Period	42,178
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	5,068
Equity grants	1,982
Equity grant forfeitures	(174)
Equity compensation expense	(1,420)
Unrecognized Compensation Cost at End of Period	5,456
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	19,849
Equity grants	5,950
Equity grant forfeitures	0
Equity compensation expense	(2,930)
Unrecognized Compensation Cost at End of Period	22,869
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	15,271
Equity grants	0
Equity grant forfeitures	0
Equity compensation expense	(1,734)
Unrecognized Compensation Cost at End of Period	13,537
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	422
Equity grant forfeitures	0
Equity compensation expense	(106)
Unrecognized Compensation Cost at End of Period	$ 316

Mortgage Banking Activities, _3

Mortgage Banking Activities, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 4,556	$ 5,983
Mortgage banking activities, net	16,671	16,315
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	(19)	617
Mortgage banking activities, net	3,365	7,935
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	6,994	(68,822)
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	(239)	2,786
Residential Mortgage Banking Activities, Net | Risk management derivatives
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Risk management derivatives	(3,371)	73,354
Total residential mortgage banking activities, net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	4,583	14,405
Mortgage banking activities, net	13,306	8,380
Total residential mortgage banking activities, net | Single-family rental loans, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	12,666	(25,193)
Total residential mortgage banking activities, net | 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	1,153	2,135
Total residential mortgage banking activities, net | Risk management derivatives
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Risk management derivatives	$ (5,096)	$ 17,033

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
MSR income, net	$ 1,077	$ 4,303
Bridge loan fees	1,592	990
Legal settlement	891	0
Other	996	690
Other income, net	$ 4,556	$ 5,983

Components of Operating Expen_3

Components of Operating Expenses - Components of General and Administrative Expenses and Other Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Fixed compensation expense	$ 15,359	$ 14,628
Annual variable compensation expense	4,005	3,357
Long-term incentive award expense	7,942	5,660
Systems and consulting	3,112	3,184
Office costs	2,040	2,025
Accounting and legal	919	1,675
Corporate costs	929	864
Other	1,249	1,883
Total General and Administrative Expenses	35,555	33,276
Portfolio Management Costs	3,510	1,578
Loan Acquisition Costs	1,289	4,465
Amortization of purchase-related intangible assets	3,107	3,534
Other	577	551
Total Other Expenses	3,684	4,085
Total Operating Expenses	44,038	43,404
Severance and transition-related expenses	1,000
Settlement in Common Stock
Business Acquisition [Line Items]
Long-term incentive award expense	6,000	5,000
Settlement in Cash
Business Acquisition [Line Items]
Long-term incentive award expense	$ 2,000	$ 1,000

Components of Operating Expen_4

Components of Operating Expenses - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) trading_day $ / shares shares	Dec. 31, 2022 USD ($)
Cash Based Retention Award
Business Acquisition [Line Items]
Variable compensation expense, term	3 years
Unamortized compensation cost	$ 2	$ 3
Cash-Settled Deferred Stock Units
Business Acquisition [Line Items]
Unamortized compensation cost	$ 5	$ 5
Variable compensation expense, service period	4 years
Cash Settled Performance Stock Units
Business Acquisition [Line Items]
Variable compensation expense, term	3 years
Unamortized compensation cost	$ 5
Cash-based retention awards granted	$ 6
Shares issued for settlement of remaining deferred consideration | shares	663,499
Grant date fair value (in dollars per share) | $ / shares	$ 9.75
Debt instrument, convertible, threshold trading days | trading_day	60
Expected volatility rate (in percent)	71%
Risk free interest rate (in percent)	4.23%
Expected dividend rate (in percent)	0%
Expected term (in years)	3 years
Cash Settled Performance Stock Units | First Vesting
Business Acquisition [Line Items]
Variable compensation expense, term	3 years
Award vesting percentage (in percent)	25%
Base Of Target Units Granted	66.67%
Cash Settled Performance Stock Units | Second Vesting
Business Acquisition [Line Items]
Variable compensation expense, term	3 years
Award vesting percentage (in percent)	100%
Cash Settled Performance Stock Units | Third Vesting
Business Acquisition [Line Items]
Variable compensation expense, term	3 years
Award vesting percentage (in percent)	100%
Cash Settled Performance Stock Units | Minimum
Business Acquisition [Line Items]
Award vesting percentage (in percent)	0%
Cash Settled Performance Stock Units | Minimum | First Vesting
Business Acquisition [Line Items]
Award vesting percentage (in percent)	0%
Cash Settled Performance Stock Units | Minimum | Second Vesting
Business Acquisition [Line Items]
Award vesting percentage (in percent)	0%
Cash Settled Performance Stock Units | Maximum
Business Acquisition [Line Items]
Award vesting percentage (in percent)	250%
Cash Settled Performance Stock Units | Maximum | First Vesting
Business Acquisition [Line Items]
Award vesting percentage (in percent)	250%
Cash Settled Performance Stock Units | Maximum | Second Vesting
Business Acquisition [Line Items]
Award vesting percentage (in percent)	250%

Taxes - Additional Information

Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Provision from (benefit for) income taxes	$ (1,123)	$ (2,458)

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate	21%	21%
State taxes, net of Federal tax effect, as applicable	(6.30%)	(1.90%)
Differences in taxable (loss) income from GAAP income	(14.30%)	(11.30%)
Change in valuation allowance	0%	0%
REIT GAAP income or loss not subject to federal income	(32.50%)	(16.40%)
Effective Tax Rate	(32.10%)	(8.60%)

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 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
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Interest income	$ 178,516	$ 189,400
Interest expense	(152,079)	(136,298)
Net Interest Income	26,437	53,102
Non-interest income (loss)
Mortgage banking activities, net	16,671	16,315
Investment fair value changes, net	(127)	(6,120)
Other income, net	4,556	5,983
Realized gains (losses), net	(2)	2,581
Total non-interest income, net	21,098	18,759
General and administrative expenses	(35,555)	(33,276)
Portfolio Management Costs	(3,510)	(1,578)
Loan acquisition costs	(1,289)	(4,465)
Other expenses	(3,684)	(4,085)
Benefit from (provision for) income taxes	1,123	2,458
Net Income	4,620	30,915
Non-cash amortization (expense) income, net	(8,895)	1,481
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	5,510	12,967
Interest expense	(6,866)	(6,936)
Net Interest Income	(1,356)	6,031
Non-interest income (loss)
Mortgage banking activities, net	3,365	7,935
Investment fair value changes, net	1,076	0
Other income, net	0	0
Realized gains (losses), net	0	0
Total non-interest income, net	4,441	7,935
General and administrative expenses	(4,806)	(6,101)
Portfolio Management Costs	0	0
Loan acquisition costs	(175)	(1,417)
Other expenses	0	0
Benefit from (provision for) income taxes	633	1,007
Net Income	(1,263)	7,455
Non-cash amortization (expense) income, net	(255)	104
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	4,494	4,841
Interest expense	(4,038)	(2,568)
Net Interest Income	456	2,273
Non-interest income (loss)
Mortgage banking activities, net	13,306	8,380
Investment fair value changes, net	0	0
Other income, net	2,408	575
Realized gains (losses), net	0	0
Total non-interest income, net	15,714	8,955
General and administrative expenses	(13,678)	(10,472)
Portfolio Management Costs	0	0
Loan acquisition costs	(1,114)	(3,048)
Other expenses	(3,108)	(3,534)
Benefit from (provision for) income taxes	703	3,281
Net Income	(1,027)	(2,545)
Non-cash amortization (expense) income, net	(3,701)	(3,890)
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income	163,660	170,572
Interest expense	(123,452)	(116,581)
Net Interest Income	40,208	53,991
Non-interest income (loss)
Mortgage banking activities, net	0	0
Investment fair value changes, net	(1,014)	(5,406)
Other income, net	2,168	5,282
Realized gains (losses), net	(117)	2,581
Total non-interest income, net	1,037	2,457
General and administrative expenses	(1,409)	(1,555)
Portfolio Management Costs	(3,510)	(1,578)
Loan acquisition costs	0	0
Other expenses	(576)	(551)
Benefit from (provision for) income taxes	(213)	(1,830)
Net Income	35,537	50,934
Non-cash amortization (expense) income, net	(2,833)	7,300
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	4,852	1,020
Interest expense	(17,723)	(10,213)
Net Interest Income	(12,871)	(9,193)
Non-interest income (loss)
Mortgage banking activities, net	0	0
Investment fair value changes, net	(189)	(714)
Other income, net	(20)	126
Realized gains (losses), net	115	0
Total non-interest income, net	(94)	(588)
General and administrative expenses	(15,662)	(15,148)
Portfolio Management Costs	0	0
Loan acquisition costs	0	0
Other expenses	0	0
Benefit from (provision for) income taxes	0	0
Net Income	(28,627)	(24,929)
Non-cash amortization (expense) income, net	$ (2,106)	$ (2,033)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Interest income	$ 178,516	$ 189,400
Interest expense	(152,079)	(136,298)
Net Interest Income	26,437	53,102
Investment fair value changes, net	(127)	(6,120)
Other income, net	4,556	5,983
Realized gains (losses), net	(2)	2,581
Total non-interest income, net	21,098	18,759
General and administrative expenses	(35,555)	(33,276)
Net Income	4,620	30,915
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	4,852	1,020
Interest expense	(17,723)	(10,213)
Net Interest Income	(12,871)	(9,193)
Investment fair value changes, net	(189)	(714)
Other income, net	(20)	126
Realized gains (losses), net	115	0
Total non-interest income, net	(94)	(588)
General and administrative expenses	(15,662)	(15,148)
Net Income	(28,627)	(24,929)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	2,543	1,012
Interest expense	(2,504)	(701)
Net Interest Income	39	311
Investment fair value changes, net	(94)	(714)
Other income, net	0	0
Realized gains (losses), net	0	0
Total non-interest income, net	(94)	(714)
General and administrative expenses	0	0
Net Income	(55)	(403)
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	2,309	8
Interest expense	(15,219)	(9,512)
Net Interest Income	(12,910)	(9,504)
Investment fair value changes, net	(95)	0
Other income, net	(20)	126
Realized gains (losses), net	115	0
Total non-interest income, net	0	126
General and administrative expenses	(15,662)	(15,148)
Net Income	$ (28,572)	$ (24,526)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 243,346	$ 240,475
Home equity investments		416,783	403,462
Other investments	[1]	381,690	390,938
Goodwill	[1]	23,373	23,373
Intangible assets		37,784	40,892
Total Assets	[1]	13,121,286	13,030,899
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,492,858	5,613,188
Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		5,364,649	5,332,586
Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		426,599	424,551
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Real estate securities		1,700	0
Home equity investments		0	0
Other investments		0	0
Goodwill		0	0
Intangible assets		0	0
Total Assets		43,095	660,916
Operating Segments | Residential Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		26,975	628,160
Operating Segments | Residential Mortgage Banking | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Residential Mortgage Banking | Consolidated Agency multifamily loans
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	23,373
Intangible assets		37,784	40,892
Total Assets		469,959	487,159
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		371,385	364,073
Operating Segments | Business Purpose Mortgage Banking | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Real estate securities		241,646	240,475
Home equity investments		416,783	403,462
Other investments		324,293	334,420
Goodwill		0	0
Intangible assets		0	0
Total Assets		11,898,454	11,303,991
Operating Segments | Investment Portfolio | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,295,883	4,800,096
Operating Segments | Investment Portfolio | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,993,264	4,968,513
Operating Segments | Investment Portfolio | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		426,599	424,551
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0	0
Home equity investments		0	0
Other investments		57,397	56,518
Goodwill		0	0
Intangible assets		0	0
Total Assets		709,778	578,833
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		170,000	184,932
Corporate/ Other | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Corporate/ Other | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2023 and December 31, 2022, assets of consolidated VIEs totaled $9,836,956 and $9,257,291, respectively. At March 31, 2023 and December 31, 2022, liabilities of consolidated VIEs totaled $8,729,585 and $8,270,276, respectively. See Note 4 for further discussion.