Redwood Trust (RWT) 10-Q 6 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-13759
Entity Registrant Name	REDWOOD TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	68-0329422
Entity Address Address Line One	One Belvedere Place,
Entity Address, Address Line Two	Suite 300
Entity Address City Or Town	Mill Valley,
Entity Address, State or Province	CA
Entity Address Postal Zip Code	94941
City Area Code	415
Local Phone Number	389-7373
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity small business	false
Emerging growth company	false
Entity Shell Company	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RWT
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		120,295,309
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
ASSETS
Real estate securities, at fair value	[1]	$ 358,882	$ 377,411
Other investments	[1]	635,581	641,969
Cash and cash equivalents	[1]	409,272	450,485
Restricted cash	[1]	73,549	80,999
Intangible assets	[1]	38,027	41,561
Derivative assets	[1]	112,060	26,467
Other assets	[1]	202,202	231,117
Total Assets	[1]	14,253,292	14,706,944
Liabilities
Short-term debt, net	[1]	1,647,246	2,177,362
Derivative liabilities	[1]	80,260	3,317
Accrued expenses and other liabilities	[1]	244,450	245,788
Asset-backed securities issued (includes $8,475,868 and $8,843,147 at fair value), net	[1]	8,872,366	9,253,557
Long-term debt, net	[1]	1,963,704	1,640,833
Total liabilities	[1]	12,808,026	13,320,857
Commitments and Contingencies	[1]
Equity
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 120,289,243 and 114,892,309 issued and outstanding	[1]	1,203	1,149
Additional paid-in capital	[1]	2,391,344	2,316,799
Accumulated other comprehensive loss	[1]	(26,474)	(8,927)
Cumulative earnings	[1]	1,347,805	1,316,890
Cumulative distributions to stockholders	[1]	(2,268,612)	(2,239,824)
Total equity	[1]	1,445,266	1,386,087
Total Liabilities and Equity	[1]	14,253,292	14,706,944
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	1,347,069	1,845,282
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	5,870,068	5,747,150
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	505,889	358,309
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,248,889	4,432,680
Multifamily loans
ASSETS
Fair value of loans	[1]	$ 451,804	$ 473,514
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
ABS issued, net, Fair value		$ 8,475,868	$ 8,843,147
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)		120,289,243	114,892,309
Common stock, outstanding (in shares)		120,289,243	114,892,309
Assets	[1]	$ 14,253,292	$ 14,706,944
Liabilities	[1]	12,808,026	13,320,857
Variable Interest Entity, Primary Beneficiary
Assets		10,250,802	10,661,081
Liabilities		$ 9,202,156	$ 9,619,347
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Income
Residential loans	$ 65,203	$ 43,655
Business purpose loans	94,299	64,188
Multifamily loans	4,753	4,786
Real estate securities	15,955	9,663
Other interest income	9,190	6,013
Total interest income	189,400	128,305
Interest Expense
Short-term debt	(11,488)	(7,773)
Asset-backed securities issued	(105,695)	(72,561)
Long-term debt	(19,115)	(22,218)
Total interest expense	(136,298)	(102,552)
Net Interest Income	53,102	25,753
Non-interest Income
Mortgage banking activities, net	16,315	82,607
Investment fair value changes, net	(6,120)	45,087
Other income, net	5,983	3,843
Realized gains, net	2,581	2,716
Total non-interest income, net	18,759	134,253
General and administrative expenses	(34,854)	(43,551)
Loan acquisition costs	(4,465)	(3,559)
Other expenses	(4,085)	(4,096)
Net Income before Benefit from (Provision for) Income Taxes	28,457	108,800
Benefit from (provision for) income taxes	2,458	(11,543)
Net Income	$ 30,915	$ 97,257
Basic earnings per common share (in dollars per share)	$ 0.25	$ 0.84
Diluted earnings per common share (in dollars per share)	$ 0.24	$ 0.72
Basic weighted average shares outstanding (in shares)	119,884,172	112,276,842
Diluted weighted average shares outstanding (in shares)	140,506,157	141,039,285

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Income	$ 30,915	$ 97,257
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale securities	(17,873)	10,986
Reclassification of unrealized (gain) on available-for-sale securities to net income	(692)	(2,795)
Reclassification of unrealized loss on interest rate agreements to net income	1,018	1,018
Total other comprehensive (loss) income	(17,547)	9,209
Total Comprehensive Income	$ 13,368	$ 106,466

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Cumulative Earnings	Cumulative Distributions to Stockholders
Beginning balance (in shares) at Dec. 31, 2020		112,090,006
Balance at beginning of period at Dec. 31, 2020	$ 1,110,899	$ 1,121	$ 2,264,874	$ (4,221)	$ 997,277	$ (2,148,152)
Increase (Decrease) in Stockholders' Equity
Net Income	97,257				97,257
Other comprehensive income (loss)	9,209			9,209
Issuance of common stock (in shares)		806,068
Issuance of common stock	13,374	$ 8	13,366
Employee stock purchase and incentive plans (in shares)		102,658
Employee stock purchase and incentive plans	(810)	$ 1	(811)
Non-cash equity award compensation	4,218		4,218
Common dividends declared	(18,572)					(18,572)
Ending balance (in shares) at Mar. 31, 2021		112,998,732
Balance at End of Period at Mar. 31, 2021	1,215,575	$ 1,130	2,281,647	4,988	1,094,534	(2,166,724)
Beginning balance (in shares) at Dec. 31, 2021		114,892,309
Balance at beginning of period at Dec. 31, 2021	1,386,087	$ 1,149	2,316,799	(8,927)	1,316,890	(2,239,824)
Increase (Decrease) in Stockholders' Equity
Net Income	30,915				30,915
Other comprehensive income (loss)	(17,547)			(17,547)
Issuance of common stock (in shares)		5,232,869
Issuance of common stock	67,475	$ 52	67,423
Employee stock purchase and incentive plans (in shares)		164,065
Employee stock purchase and incentive plans	(1,046)	$ 2	(1,048)
Non-cash equity award compensation	8,170		8,170
Common dividends declared	(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	$ 1,203	$ 2,391,344	$ (26,474)	$ 1,347,805	$ (2,268,612)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.23	$ 0.16

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activities:
Net Income		$ 30,915	$ 97,257
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of premiums, discounts, and securities issuance costs, net		(5,451)	2,216
Depreciation and amortization of non-financial assets		3,969	4,172
Originations of held-for-sale loans		(443,289)	(254,975)
Purchases of held-for-sale loans		(2,197,570)	(3,150,432)
Proceeds from sales of held-for-sale loans		2,176,422	2,345,164
Principal payments on held-for-sale loans		46,511	4,477
Net settlements of derivatives		67,200	24,849
Non-cash equity award compensation expense		8,170	4,218
Market valuation adjustments		1,859	(119,783)
Realized gains, net		(2,581)	(2,716)
Net change in:
Accrued interest receivable and other assets		31,070	2,565
Accrued interest payable and accrued expenses and other liabilities		(8,901)	76,824
Net cash used in operating activities		(291,676)	(966,164)
Cash Flows From Investing Activities:
Originations of loan investments		(411,938)	(133,229)
Purchases of loan investments		(2,983)	0
Proceeds from sales of loan investments		0	8,877
Principal payments on loan investments		660,990	649,749
Purchases of real estate securities		(15,006)	(15,880)
Sales of securities held in consolidated securitization trusts		0	8,197
Proceeds from sales of real estate securities		0	25,747
Principal payments on real estate securities		23,050	11,746
Principal repayments from servicer advance investments		45,005	24,804
Purchases of HEIs		(40,141)	0
Principal payments on HEIs		12,671	0
Other investing activities, net		(1,151)	2,601
Net cash provided by investing activities		270,497	582,612
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		2,153,516	2,724,508
Repayments on short-term debt		(2,684,078)	(1,993,506)
Proceeds from issuance of asset-backed securities		680,749	147,086
Repayments on asset-backed securities issued		(535,568)	(507,037)
Proceeds from borrowings on long-term debt		630,865	164,456
Deferred long-term debt issuance costs paid		(532)	0
Repayments on long-term debt		(308,578)	(154,074)
Net proceeds from issuance of common stock		67,632	115
Taxes paid on equity award distributions		(1,202)	(925)
Dividends paid		(28,788)	(18,572)
Other financing activities, net		(1,500)	(1,155)
Net cash (used in) provided by financing activities		(27,484)	360,896
Net decrease in cash, cash equivalents and restricted cash		(48,663)	(22,656)
Cash, cash equivalents and restricted cash at beginning of period	[1]	531,484	544,450
Cash, cash equivalents, and restricted cash at end of period	[1]	482,821	521,794
Cash paid during the period for:
Interest		131,419	99,180
Taxes (received) paid		(41)	7
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		0	7,627
Retention of mortgage servicing rights from loan securitizations and sales		4,543	0
Transfers from loans held-for-sale to loans held-for-investment		1,098,459	301,298
Transfers from residential loans to real estate owned		1,319	14,684
Issuance of common stock for 5 Arches acquisition		$ 0	$ 13,375
[1]	Cash, cash equivalents, and restricted cash includes cash and cash equivalents of $409 million and restricted cash of $74 million at March 31, 2022, and includes cash and cash equivalents of $450 million and restricted cash of $81 million at December 31, 2021.

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Statement of Cash Flows [Abstract]
Cash and cash equivalents	[1]	$ 409,272	$ 450,485
Restricted cash	[1]	$ 73,549	$ 80,999
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Organization

Organization	3 Months Ended
	Mar. 31, 2022
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 portfolios. Redwood Trust, Inc. has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its subsidiaries that are generally not subject to subsidiary-level corporate income tax as “the REIT” or “our REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are subject to subsidiary-level corporate income tax as “our taxable REIT subsidiaries” or “TRS.”

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at March 31, 2022 and December 31, 2021, and for the three months ended March 31, 2022 and 2021. 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, 2021. 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, 2022 and results of operations for all periods presented. The results of operations for the three months ended March 31, 2022 should not be construed as indicative of the results to be expected for the full year. Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities issued prior to 2012 ("Legacy Sequoia"), certain entities formed during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest single-family rental and bridge loans ("CAFL") and 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 Multifamily loans held-for-investment, at fair value, the underlying single-family rental and bridge loans at the consolidated CAFL entities are shown under Business purpose loans held-for-investment, at fair value, and the underlying HEIs at the consolidated HEI securitization entity are shown under Other investments, at fair value on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, 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 14 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships. See Note 4 for further discussion on principles of consolidation. Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material. Acquisitions Refer to Note 2 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, for additional information regarding the acquisitions of 5 Arches, LLC ("5 Arches") and CoreVest American Finance Lender, LLC and certain affiliated entities ("CoreVest"), including purchase price allocations. In connection with the acquisitions of 5 Arches and CoreVest in 2019, we identified and recorded finite-lived intangible assets totaling $25 million and $57 million, respectively. The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at March 31, 2022. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at March 31, 2022 Carrying Value at March 31, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (15,909) $ 29,391 7 Broker network 18,100 (11,162) 6,938 5 Non-compete agreements 9,500 (8,308) 1,192 3 Tradenames 4,000 (3,494) 506 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (43,273) $ 38,027 6 All of our intangible assets are amortized on a straight-line basis. For each of the three months ended March 31, 2022 and 2021, 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, 2022 2022 (9 months) $ 9,266 2023 10,091 2024 7,075 2025 6,471 2026 5,124 Total Future Intangible Asset Amortization $ 38,027 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, 2022.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
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, 2021 is a summary of our significant accounting policies. Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This new guidance simplifies the accounting for convertible debt by reducing the number of accounting models to separately present certain conversion features in equity. This new guidance was effective for fiscal years beginning after December 31, 2021. We adopted this guidance in the first quarter of 2022, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements On March 28, 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method," which will expand companies' abilities to hedge the benchmark interest rate risk of portfolios of financial assets (or beneficial interests) in a fair value hedge. The ASU expands the use of the portfolio layer method (previously referred to as the last-of-layer method) to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. The ASU also permits both prepayable and non-prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. The ASU further requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. On March 31, 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the current expected credit loss ("CECL") model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through March 31, 2022, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. We have an established cross-functional group that has evaluated our exposure to LIBOR, reviewed relevant contracts and has monitored regulatory updates to assess the potential impact to our business, processes and technology from the ultimate full cessation of LIBOR in 2023, and has established a LIBOR transition plan to facilitate an orderly transition to alternative reference rates. We continue to remain on track with our LIBOR transition plan, which requires different solutions depending on the underlying asset or liability with LIBOR exposure. At March 31, 2022, our primary LIBOR exposure included the following: $966 million of repo or warehouse debt, $381 million of interest rate swaps, $858 million of bridge loans, and $140 million of trust preferred securities and subordinated notes debt. Since December 31, 2021, c ertain of our contracts, such as interest rate swaps, have experienced an orderly market transition and we have transitioned a substantial portion of our derivative positions off of LIBOR-benchmarks. Other contracts, such as warehouse debt agreements, require bilateral amendments, many of which we have amended or are currently in the process of amending. We anticipate most of these facilities will be amended in 2022, with sufficient time remaining to resolve the remainder. In early 2022, we began benchmarking all newly originated bridge loans to the Secured Overnight Financing Rate (“SOFR”), and our existing portfolio of bridge loans are short-dated and we expect the vast majority to mature before the LIBOR cessation date in 2023. Additionally, as the result of recent 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 table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at March 31, 2022 and December 31, 2021. Table 3.1 – Offsetting of Financial Assets, Liabilities, and Collateral Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount March 31, 2022 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 11,412 $ — $ 11,412 $ (650) $ — $ 10,762 TBAs 95,631 — 95,631 (52,993) (41,706) 932 Futures 2,907 — 2,907 (236) (151) 2,520 Total Assets $ 109,950 $ — $ 109,950 $ (53,879) $ (41,857) $ 14,214 Liabilities (2) Interest rate agreements $ (650) $ — $ (650) $ 650 $ — $ — TBAs (64,883) — (64,883) 52,993 9,628 (2,262) Futures (236) — (236) 236 — — Loan warehouse debt (426,055) — (426,055) 426,055 — — Total Liabilities $ (491,824) $ — $ (491,824) $ 479,934 $ 9,628 $ (2,262) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 18,929 $ — $ 18,929 $ (1,251) $ (16,046) $ 1,632 TBAs 2,880 — 2,880 (633) (704) 1,543 Futures 25 — 25 (25) — — Total Assets $ 21,834 $ — $ 21,834 $ (1,909) $ (16,750) $ 3,175 Liabilities (2) Interest rate agreements $ (1,251) $ — $ (1,251) $ 1,251 $ — $ — TBAs $ (658) $ — $ (658) $ 633 $ 15 $ (10) Futures (905) — (905) 25 880 — Loan warehouse debt (572,720) — (572,720) 572,720 — — Total Liabilities $ (575,534) $ — $ (575,534) $ 574,629 $ 895 $ (10) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements and TBAs are components of derivatives instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by certain residential and business purpose loans, and security repurchase agreements are components of Short-term debt and Long-term debt on our consolidated balance sheets.

Principles of Consolidation

Principles of Consolidation	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation GAAP requires us to consider whether securitizations we sponsor and other transfers of financial assets should be treated as sales or financings, as well as whether any VIEs that we hold variable interests in – for example, certain legal entities often used in securitization and other structured finance transactions – should be included in our consolidated financial statements. The GAAP principles we apply require us to reassess our requirement to consolidate VIEs each quarter and therefore our determination may change based upon new facts and circumstances pertaining to each VIE. This could result in a material impact to our consolidated financial statements during subsequent reporting periods. Analysis of Consolidated VIEs At March 31, 2022, we consolidated Legacy Sequoia, Sequoia, CAFL, Freddie Mac SLST, Freddie Mac K-Series, and HEI securitization entities that we determined were VIEs and for which we determined we were the primary beneficiary. Each of these entities is independent of Redwood and of each other and the assets and liabilities of these entities are not owned by and are not legal obligations of ours. Our exposure to these entities is primarily through the financial interests we have retained, although for certain securitizations, we are exposed to financial risks associated with our role as a sponsor, servicing administrator, collateral administrator, or depositor of these entities or as a result of our having sold assets directly or indirectly to these entities. We also consolidate two Servicing Investment entities formed to invest in servicing-related assets that we determined were VIEs and for which we determined we were the primary beneficiary. At March 31, 2022, we held an 80% ownership interest in, and were responsible for the management of, each entity. See Note 10 for a further description of these entities and the investments they hold and Note 12 for additional information on the minority partner’s non-controlling interest. Additionally, we consolidated an entity that was formed to finance servicer advances that we determined was a VIE and for which we, through our control of one of the aforementioned partnerships, were the primary beneficiary. The servicer advance financing consists of non-recourse short-term securitization debt, secured by servicer advances. We consolidate the securitization entity, but the securitization entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. See Note 13 for additional information on the servicer advance financing. At March 31, 2022, the estimated fair value of our investment in the Servicing Investment entities was $99 million. During 2021, we consolidated a HEI securitization entity formed to invest in HEIs that we determined was a VIE and for which we determined we were the primary beneficiary. At March 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 12 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 securitization, Freddie Mac SLST re-securitization, and Servicing Investment entities. The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs March 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 222,213 $ 3,872,316 $ — $ 1,775,538 $ — $ — $ — $ 5,870,067 Business purpose loans, held-for-investment — — 3,330,910 — — — — 3,330,910 Multifamily loans, held-for-investment — — — — 451,804 — — 451,804 Other investments — — — — — 336,282 153,247 489,529 Cash and cash equivalents — — — — — 9,684 — 9,684 Restricted cash 148 4 8,260 — — 24,170 5,086 37,668 Accrued interest receivable 194 11,945 14,763 5,584 1,362 1,029 — 34,877 Other assets — — 16,229 2,421 — 7,563 50 26,263 Total Assets $ 222,555 $ 3,884,265 $ 3,370,162 $ 1,783,543 $ 453,166 $ 378,728 $ 158,383 $ 10,250,802 Short-term debt $ — $ — $ — $ — $ — $ 253,393 $ — $ 253,393 Accrued interest payable 106 9,598 10,342 3,888 1,232 183 — 25,349 Accrued expenses and other liabilities — 4 1,386 — — 26,406 23,252 51,048 Asset-backed securities issued 220,301 3,627,920 3,012,841 1,470,043 419,883 — 121,378 8,872,366 Total Liabilities $ 220,407 $ 3,637,522 $ 3,024,569 $ 1,473,931 $ 421,115 $ 279,982 $ 144,630 $ 9,202,156 Value of our investments in VIEs (1) $ 1,912 $ 244,396 $ 342,343 $ 307,916 $ 31,921 $ 98,746 $ 13,753 $ 1,040,987 Number of VIEs 20 17 16 3 1 3 1 61 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Multifamily loans, held-for-investment — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) $ 2,634 $ 245,417 $ 339,419 $ 301,795 $ 31,657 $ 102,540 $ 10,451 $ 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, represent the fair value of our economic interests in the VIEs only for consolidated VIEs we account for under the CFE election. CAFL includes SFR loan securitizations we account for under the CFE election and a bridge loan securitization for which we did not make the CFE election. As of March 31, 2022 and December 31, 2021, the fair value of our interests in the CAFL SFR securitizations were $306 million and $302 million, respectively, and our net carrying value in the CAFL Bridge securitization was $37 million and $38 million, respectively. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of March 31, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $437 million and $445 million, respectively, and the carrying value of the ABS issued and carried at amortized historical cost was $129 million and $143 million, respectively. The following table presents income (loss) from these VIEs for the three months ended March 31, 2022 and 2021. Table 4.2 – Income (Loss) from Consolidated VIEs 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 Three Months Ended March 31, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,348 $ 15,483 $ 48,873 $ 20,159 $ 4,786 $ 4,222 $ — $ 94,871 Interest expense (875) (12,106) (39,011) (17,371) (4,356) (1,286) — (75,005) Net interest income 473 3,377 9,862 2,788 430 2,936 — 19,866 Non-interest income Investment fair value changes, net (699) 4,898 (286) 4,117 8,921 (1,246) — 15,705 Total non-interest income, net (699) 4,898 (286) 4,117 8,921 (1,246) — 15,705 General and administrative expenses — — — — — (38) — (38) Other expenses — — — — — (330) — (330) Income (loss) from Consolidated VIEs $ (226) $ 8,275 $ 9,576 $ 6,905 $ 9,351 $ 1,322 $ — $ 35,203 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 securitization 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 securitization 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, 2022, and accounted for these transfers as sales for financial reporting purposes, in accordance with ASC 860. We also determined we were not the primary beneficiary of these VIEs as we lacked the power to direct the activities that will have the most significant economic impact on the entities. For certain of these transfers to securitization entities, for the transferred loans where we held the servicing rights prior to the transfer and continued to hold the servicing rights following the transfer, we recorded mortgage servicing rights ("MSRs") on our consolidated balance sheets, and classified those MSRs as Level 3 assets. We also retained senior and subordinate securities in these securitizations that we classified as Level 3 assets. Our continuing involvement in these securitizations is limited to customary servicing obligations associated with retaining servicing rights (which we retain a third-party sub-servicer to perform) and the receipt of interest income associated with the securities we retained. During the three months ended March 31, 2022, we called three of our unconsolidated Sequoia entities, and purchased $102 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $0.3 million gain on the securities we owned from these called securitizations, which was recognized through Realized gains, net on our consolidated statements of income. At March 31, 2022, we held $246 million of loans for sale at fair value that were acquired following the calls. The following table presents information related to securitization transactions that occurred during the three months ended March 31, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans transferred $ — $ 875,879 Trading securities retained, at fair value — 6,549 AFS securities retained, at fair value — 1,078 The following table summarizes the cash flows during the three months ended March 31, 2022 and 2021 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.4 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2022 2021 Proceeds from new transfers $ — $ 904,390 MSR fees received 864 1,607 Funding of compensating interest, net (16) (100) Cash flows received on retained securities 14,126 8,629 The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three months ended March 31, 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 12 % 12 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.22 % 0.22 % The following table presents additional information at March 31, 2022 and December 31, 2021, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 24,246 $ 18,214 Subordinate securities, classified as AFS 108,768 127,542 Mortgage servicing rights 9,127 6,450 Maximum loss exposure (1) $ 142,141 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,491,763 $ 4,959,234 Principal balance of loans 30+ days delinquent 27,286 30,594 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization. The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at March 31, 2022 and December 31, 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2022 $ 9,127 $ 24,246 $ 108,768 Expected life (in years) (2) 5 6 11 Prepayment speed assumption (annual CPR) (2) 16 % 14 % 22 % Decrease in fair value from: 10% adverse change $ 396 $ 986 $ 1,228 25% adverse change 912 2,318 3,068 Discount rate assumption (2) 12 % 16 % 6 % Decrease in fair value from: 100 basis point increase $ 282 $ 656 $ 9,022 200 basis point increase 547 1,273 17,064 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A $ — $ 45 25% higher losses N/A — 113 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,528 25% higher losses N/A — 3,819 (1) Senior securities included $24 million and $18 million of interest-only securities at March 31, 2022 and December 31, 2021, respectively. (2) Expected life, prepayment speed assumption, discount rate assumption, and credit loss assumption presented in the tables above represent weighted averages. Analysis of Unconsolidated Third-Party VIEs Third-party VIEs are securitization entities in which we maintain an economic interest, but do not sponsor. Our economic interest may include several securities and other investments from the same third-party VIE, and in those cases, the analysis is performed in consideration of all of our interests. The following table presents a summary of our interests in third-party VIEs at March 31, 2022 and December 31, 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) March 31, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 9,960 $ 3,572 Subordinate 215,908 228,083 Total Mortgage-Backed Securities 225,868 231,655 Excess MSR 9,579 10,400 Total Investments in Third-Party Sponsored VIEs $ 235,447 $ 242,055 We determined that we are not the primary beneficiary of these third-party VIEs, as we do not have the required power to direct the activities that most significantly impact the economic performance of these entities. Specifically, we do not service or manage these entities or otherwise solely hold decision making powers that are significant. As a result of this assessment, we do not consolidate any of the underlying assets and liabilities of these third-party VIEs – we only account for our specific interests in them.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments For financial reporting purposes, we follow a fair value hierarchy established under GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., our own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at March 31, 2022 and December 31, 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,347,036 $ 1,347,036 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment 5,870,068 5,870,068 5,747,150 5,747,150 Business purpose loans, held-for-sale 505,889 505,889 358,309 358,309 Business purpose loans, held-for-investment 4,248,889 4,248,889 4,432,680 4,432,680 Multifamily loans 451,804 451,804 473,514 473,514 Real estate securities 358,882 358,882 377,411 377,411 Servicer advance investments (1) 302,837 302,837 350,923 350,923 MSRs (1) 19,739 19,739 12,438 12,438 Excess MSRs (1) 43,023 43,023 44,231 44,231 HEIs (1) 227,133 227,133 192,740 192,740 Other investments (1) 11,824 11,824 12,663 12,663 Cash and cash equivalents 409,272 409,272 450,485 450,485 Restricted cash 73,549 73,549 80,999 80,999 Derivative assets 112,060 112,060 26,467 26,467 REO (2) 27,179 30,787 36,126 39,272 Margin receivable (2) 17,165 17,165 7,269 7,269 Liabilities Short-term debt $ 1,647,246 $ 1,647,246 $ 2,177,362 $ 2,177,362 Margin payable (3) 41,966 41,966 24,368 24,368 Guarantee obligation (3) 7,046 6,579 7,459 7,133 HEI securitization non-controlling interest 23,253 23,253 17,035 17,035 Derivative liabilities 80,260 80,260 3,317 3,317 ABS issued net Fair value 8,475,868 8,475,868 8,843,147 8,843,147 Amortized cost 396,498 379,930 410,410 410,471 Other long-term debt, net (4) 1,310,683 1,307,867 988,483 989,570 Convertible notes, net (4) 514,289 518,738 513,629 537,300 Trust preferred securities and subordinated notes, net (4) 138,732 104,625 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (4) The liabilities are included in Long-Term debt, net of our consolidated balance sheets. During the three months ended March 31, 2022 and 2021, we elected the fair value option for $5 million and $22 million of securities, respectively, $2.12 billion and $3.10 billion of residential loans (principal balance), respectively, $920 million and $386 million of business purpose loans (principal balance), respectively. Additionally, during the three months ended March 31, 2022, we elected the fair value option for $40 million of HEIs and $6 million of Other Investments. 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, 2022 and December 31, 2021, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis March 31, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,217,104 $ — $ — $ 7,217,104 Business purpose loans 4,754,778 — — 4,754,778 Multifamily loans 451,804 — — 451,804 Real estate securities 358,882 — — 358,882 Servicer advance investments 302,837 — — 302,837 MSRs 19,739 — — 19,739 Excess MSRs 43,023 — — 43,023 HEIs 227,133 — — 227,133 Other investments 11,824 — — 11,824 Derivative assets 112,060 98,538 11,412 2,110 Liabilities HEI securitization non-controlling interest $ 23,253 $ — $ — $ 23,253 Derivative liabilities 80,260 65,119 650 14,491 ABS issued 8,475,868 — — 8,475,868 December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 Liabilities HEI securitization non-controlling interest $ 17,035 $ — $ — $ 17,035 Derivative liabilities 3,317 1,563 1,251 503 ABS issued 8,843,147 — — 8,843,147 The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2022. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Multifamily Loans Trading Securities AFS Servicer Advance Investments Excess MSRs HEIs MSRs and Other Investments (In Thousands) Beginning balance - $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Acquisitions 2,110,494 64,875 — 5,006 10,000 — — 40,141 5,793 Originations — 855,227 — — — — — — — Sales (1,849,874) (331,750) — — — — — — (1,762) Principal paydowns (297,480) (407,991) (2,029) (485) (22,564) (45,005) — (12,671) (30) Gains (losses) in net income, net (337,595) (216,300) (19,681) (1,456) 10,383 (3,081) (1,208) 6,923 3,020 Unrealized losses in OCI, net — — — — (19,413) — — — — Other settlements, net (1) (839) (272) — — — — — — (559) Ending balance - $ 7,217,104 $ 4,754,778 $ 451,804 $ 173,684 $ 185,198 $ 302,837 $ 43,023 $ 227,133 $ 31,563 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 680,749 Principal paydowns — — (520,949) Gains (losses) in net income, net (42,379) 6,218 (527,079) Other settlements, net (1) 25,868 — — Ending balance - March 31, 2022 $ (12,381) $ 23,253 $ 8,475,868 (1) Other settlements, net for residential and business purpose loans represents the transfer of loans to REO, and for derivatives, the transfer of the fair value of loan purchase or interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental loans. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, forward sale commitments, and interest rate lock commitments, are presented on a net basis. The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at March 31, 2022 and 2021. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2022 and 2021 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at March 31, 2022 and 2021 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2022 2021 Assets Residential loans at Redwood $ (35,397) $ (9,978) Business purpose loans (14,647) 5,104 Net investments in consolidated Sequoia entities (1) (4,981) 4,201 Net investments in consolidated Freddie Mac SLST entities (1) 2,940 4,088 Net investments in consolidated Freddie Mac K-Series entities (1) 264 8,921 Net investments in consolidated CAFL SFR entities (1) 4,048 370 Net investment in consolidated HEI securitization entity (1) 9,628 — Trading securities (1,401) 490 Servicer advance investments (3,081) (160) MSRs 3,526 756 Excess MSRs (1,208) (1,952) HEIs at Redwood 1,185 5,315 Loan purchase and interest rate lock commitments 2,050 1,053 Liabilities HEI securitization non-controlling interest $ (6,218) $ — Loan purchase commitments (14,442) (35,661) (1) Represents the portion of net gains or losses included in our consolidated statements of income related to loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at March 31, 2022 and 2021, which netted together represent the change in value of our investments at the consolidated VIEs, excluding REO. The following table presents information on assets recorded at fair value on a non-recurring basis at March 31, 2022. 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, 2022. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2022 Gain (Loss) for March 31, 2022 Carrying Fair Value Measurements Using Three Months Ended Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2022 March 31, 2022 Assets REO $ 646 $ — $ — $ 646 $ — $ — 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, 2022 and 2021. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2022 2021 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (27,199) $ 23,112 Residential loan purchase commitments (41,623) (52,385) Single-family rental loans held-for-sale, at fair value (24,468) 10,248 Single-family rental loan interest rate lock commitments (725) — Bridge loans 2,135 1,044 Trading securities (1) 2,786 721 Risk management derivatives, net 90,387 92,822 Total mortgage banking activities, net (2) $ 1,293 $ 75,562 Investment Fair Value Changes, Net Residential loans held-for-sale, at fair value (called Sequoia loans) $ (4,252) $ 317 Bridge loans held-for-investment (2,143) 3,304 Trading securities (4,242) 20,628 Servicer advance investments (3,081) (160) Excess MSRs (1,208) (1,953) Net investments in Legacy Sequoia entities (3) (714) (699) Net investments in Sequoia entities (3) (3,822) 4,898 Net investments in Freddie Mac SLST entities (3) 3,036 4,117 Net investment in Freddie Mac K-Series entity (3) 264 8,921 Net investments in CAFL SFR entities (3) 4,048 (286) Net investment in HEI securitization entity (3) 3,411 — HEIs at Redwood 1,192 5,315 Other investments 123 310 Risk management derivatives, net 1,973 — Credit (losses) recoveries on AFS securities (705) 375 Total investment fair value changes, net $ (6,120) $ 45,087 Other Income MSRs $ 2,968 $ (866) Total other income (4) $ 2,968 $ (866) Total Market Valuation Gains (Losses), Net $ (1,859) $ 119,783 (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the mark-to-market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases expense, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3) Includes changes in fair value of the residential loans held-for-investment, securitized HEIs, REO and the ABS issued at the entities, which netted together represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election. (4) Other income presented above does not include net MSR fee income or provisions for repurchases for MSRs, as these amounts do not represent market valuation adjustments. 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, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets Residential loans, at fair value: Jumbo fixed-rate loans $ 772,917 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.94 - $ 2.94 $ 2.94 Whole loan spread to swap rate 225 - 225 bps 225 bps Called loan dollar price $ 100 — $ 100 $ 100 Jumbo loans committed to sell 574,119 Whole loan committed sales price $ 95.92 - $ 102.19 $ 98.23 Loans held by Legacy Sequoia (2) 222,213 Liability price N/A N/A Loans held by Sequoia (2) 3,872,316 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,775,539 Liability price N/A N/A Business purpose loans: Single-family rental loans 505,889 Senior credit spread 140 - 175 bps 155 bps Subordinate credit spread 180 - 1,434 bps 377 bps Senior credit support 36 - 37 % 36 % IO discount rate 8 - 14 % 9 % Prepayment rate (annual CPR) 3 - 25 % 7 % Non-securitizable loan dollar price $ 78 - $ 100 $ 98 Single-family rental loans held by CAFL (2) 3,038,939 Liability price N/A N/A Bridge loans 1,209,950 Whole loan discount rate 4 - 15 % 7 % Senior credit spread 180 - 180 bps 180 bps Subordinate credit spread 225 - 790 bps 498 bps Senior credit support 47 - 47 % 47 % Residual certificate discount rate 11 - 11 % 11 % Multifamily loans held by Freddie Mac K-Series (2) 451,804 Liability price N/A N/A Trading and AFS securities 358,882 Discount rate — - 18 % 8 % Prepayment rate (annual CPR) 8 - 55 % 20 % Default rate — - 27 % 4 % Loss severity — - 50 % 25 % CRT dollar price $ 88 - $ 106 $ 95 Servicer advance investments 302,837 Discount rate 2 - 4 % 3 % Prepayment rate (annual CPR) 14 - 30 % 17 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 17 bps 5 bps MSRs 19,739 Discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 10 - 29 % 16 % Per loan annual cost to service $ 94 - $ 94 $ 94 Excess MSRs 43,023 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 18 - 31 % 21 % Excess mortgage servicing income 10 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) March 31, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) HEI 73,886 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 24 % 17 % Home price appreciation 3 - 4 % 3 % HEIs held by HEI securitization entity 153,247 Liability price N/A N/A N/A REO 646 Loss severity 4 - 24 % 12 % Liabilities Residential loan purchase commitments, net 12,322 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.94 - $ 2.94 $ 2.94 Whole loan spread to swap rate 225 - 225 bps 225 bps Pull-through rate 20 - 100 % 73 % Committed sales price $ 95.92 - $ 102.29 $ 98.18 Single-family rental interest rate lock commitments 59 Senior credit spread 140 - 140 bps 140 bps Subordinate credit spread 180 - 1,434 bps 331 bps Senior credit support 37 - 37 % 37 % IO discount rate 8 - 8 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Pull-through rate 100 100 % 100 % ABS issued (2) : At consolidated Sequoia entities 3,848,221 Discount rate — - 18 % 5 % Prepayment rate (annual CPR) 7 - 45 % 25 % Default rate — - 11 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 2,745,104 Discount rate 2 - 12 % 5 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 5 - 20 % 6 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,341,282 Discount rate 3 - 7 % 4 % Prepayment rate (annual CPR) 6 - 7 % 6 % Default rate 9 - 10 % 9 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 419,883 Discount rate 3 - 8 % 3 % At consolidated HEI securitization entity (4) 121,378 Discount rate 7 - 12 % 7 % Prepayment rate (annual CPR) 20 - 20 % 20 % Default rate 10 - 10 % 10 % Loss severity 30 - 30 % 30 % Home price appreciation 3 - 4 % 3 % Footnotes to Table 5.7 (1) The weighted average input values for all loan types are based on the unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) The fair value of the loans and HEIs held by consolidated entities was based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At March 31, 2022, 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 $246 million, $306 million, $437 million, $32 million, and $14 million, respectively. (3) Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool). (4) As a market convention, certain securities are priced to a no-loss yield and therefore do not include default and loss severity assumptions. Determination of Fair Value We generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets and liabilities. Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs as indicated in the preceding table. Accordingly, a significant increase or decrease in any of these inputs - such as anticipated credit losses, prepayment rates, interest rates, or other valuation assumptions - in isolation would likely result in a significantly lower or higher fair value measurement. Included in Note 5 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2021 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 start-up companies) are Level 3 financial instruments that we account for under the fair value option. These investments generally take the form of equity or debt with conversion features and do not have readily determinable fair values. We 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.

Residential Loans

Residential Loans	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Residential Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,347,069 $ — $ — $ — $ 1,347,069 Held-for-investment at fair value — 222,213 3,872,316 1,775,539 5,870,068 Total Residential Loans $ 1,347,069 $ 222,213 $ 3,872,316 $ 1,775,539 $ 7,217,137 December 31, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At March 31, 2022, we owned mortgage servicing rights associated with $1.29 billion (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 1,611 2,196 Unpaid principal balance $ 1,369,366 $ 1,813,865 Fair value of loans $ 1,347,069 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,334,272 $ 1,838,797 Weighted average coupon 3.63 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 616 $ 2,923 Fair value of loans with 90+ day delinquencies $ 615 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 2,115,191 $ 3,096,048 Principal balance of loans sold 1,827,364 2,275,832 Principal balance of loans transferred to HFI 687,192 — Net market valuation gains (losses) recorded (2) (31,451) 23,429 (1) Includes $102 million of loans acquired through calls of three 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, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,524 4,870 11,654 Unpaid principal balance $ 248,814 $ 4,123,176 $ 1,865,735 Fair value of loans $ 222,213 $ 3,872,316 $ 1,775,538 Weighted average coupon 1.88 % 3.28 % 4.52 % Delinquency information Number of loans with 90+ day delinquencies (1) 34 16 1,291 Unpaid principal balance of loans with 90+ day delinquencies $ 6,996 $ 12,879 $ 220,402 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 256 Unpaid principal balance of loans in foreclosure $ 902 $ 1,484 $ 43,467 December 31, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.87 % 3.39 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 684,491 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) 6,325 (270,731) (43,768) 7,613 (2,578) (3,566) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 505,889 — $ — $ — $ 505,889 Held-for-investment at fair value — 3,038,939 917,979 291,971 4,248,889 Total Business Purpose Loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 $ 4,754,778 December 31, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding single-family rental loans at March 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% with original maturities of 30 years. The outstanding bridge loans held-for-investment at March 31, 2022 were first-lien, interest-only loans with original maturities of six At March 31, 2022, we had a $792 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 442,727 $ 411,938 $ 253,098 $ 133,229 Principal balance of loans acquired 61,892 2,983 — — Principal balance of loans sold to third parties 331,502 — — 8,877 Fair value of loans transferred from HFS to HFI (1) — — 169,404 — Mortgage banking activities income (loss) recorded (2) (24,468) 2,375 10,248 542 Investment fair value changes recorded (3) — (759) — 3,304 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations and the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (2) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three months ended March 31, 2022 and 2021, we recorded loan origination fee income of $14 million and $6 million, respectively, through Mortgage banking activities, net on our consolidated statements of income. (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 single-family rental loans and bridge loans owned by these entities. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (191,903) $ (1,384) $ (60,901) $ — (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . REO See Note 12 for detail on BPL loans transferred to REO during 2022. 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, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2022 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 239 1,116 1,384 1,375 Unpaid principal balance $ 518,230 $ 3,083,716 $ 921,208 $ 288,823 Fair value of loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 Weighted average coupon 4.76 % 5.15 % 6.38 % 6.77 % Weighted average remaining loan term (years) 11 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 66,685 N/A $ 62,494 N/A Market value of loans pledged as collateral under long-term debt facilities $ 376,502 N/A $ 815,580 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 4 22 56 48 Unpaid principal balance of loans with 90+ day delinquencies $ 5,212 $ 52,725 $ 32,830 $ 7,847 Fair value of loans with 90+ day delinquencies (2) $ 4,086 N/A $ 28,319 $ 7,847 Number of loans in foreclosure (3) 5 9 37 3 Unpaid principal balance of loans in foreclosure $ 5,301 $ 12,623 $ 42,152 $ 4,472 Fair value of loans in foreclosure (2) $ 4,153 N/A $ 37,641 $ 4,472 December 31, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (2) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure (3) 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (2) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (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, 2022 and December 31, 2021. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 453,140 $ 455,168 Fair value of loans $ 451,804 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at March 31, 2022 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2022 and 2021. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (19,681) $ (730) (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, 2022
Receivables [Abstract]
Business Purpose Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,347,069 $ — $ — $ — $ 1,347,069 Held-for-investment at fair value — 222,213 3,872,316 1,775,539 5,870,068 Total Residential Loans $ 1,347,069 $ 222,213 $ 3,872,316 $ 1,775,539 $ 7,217,137 December 31, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At March 31, 2022, we owned mortgage servicing rights associated with $1.29 billion (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 1,611 2,196 Unpaid principal balance $ 1,369,366 $ 1,813,865 Fair value of loans $ 1,347,069 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,334,272 $ 1,838,797 Weighted average coupon 3.63 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 616 $ 2,923 Fair value of loans with 90+ day delinquencies $ 615 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 2,115,191 $ 3,096,048 Principal balance of loans sold 1,827,364 2,275,832 Principal balance of loans transferred to HFI 687,192 — Net market valuation gains (losses) recorded (2) (31,451) 23,429 (1) Includes $102 million of loans acquired through calls of three 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, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,524 4,870 11,654 Unpaid principal balance $ 248,814 $ 4,123,176 $ 1,865,735 Fair value of loans $ 222,213 $ 3,872,316 $ 1,775,538 Weighted average coupon 1.88 % 3.28 % 4.52 % Delinquency information Number of loans with 90+ day delinquencies (1) 34 16 1,291 Unpaid principal balance of loans with 90+ day delinquencies $ 6,996 $ 12,879 $ 220,402 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 256 Unpaid principal balance of loans in foreclosure $ 902 $ 1,484 $ 43,467 December 31, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.87 % 3.39 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 684,491 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) 6,325 (270,731) (43,768) 7,613 (2,578) (3,566) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 505,889 — $ — $ — $ 505,889 Held-for-investment at fair value — 3,038,939 917,979 291,971 4,248,889 Total Business Purpose Loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 $ 4,754,778 December 31, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding single-family rental loans at March 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% with original maturities of 30 years. The outstanding bridge loans held-for-investment at March 31, 2022 were first-lien, interest-only loans with original maturities of six At March 31, 2022, we had a $792 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 442,727 $ 411,938 $ 253,098 $ 133,229 Principal balance of loans acquired 61,892 2,983 — — Principal balance of loans sold to third parties 331,502 — — 8,877 Fair value of loans transferred from HFS to HFI (1) — — 169,404 — Mortgage banking activities income (loss) recorded (2) (24,468) 2,375 10,248 542 Investment fair value changes recorded (3) — (759) — 3,304 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations and the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (2) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three months ended March 31, 2022 and 2021, we recorded loan origination fee income of $14 million and $6 million, respectively, through Mortgage banking activities, net on our consolidated statements of income. (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 single-family rental loans and bridge loans owned by these entities. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (191,903) $ (1,384) $ (60,901) $ — (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . REO See Note 12 for detail on BPL loans transferred to REO during 2022. 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, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2022 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 239 1,116 1,384 1,375 Unpaid principal balance $ 518,230 $ 3,083,716 $ 921,208 $ 288,823 Fair value of loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 Weighted average coupon 4.76 % 5.15 % 6.38 % 6.77 % Weighted average remaining loan term (years) 11 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 66,685 N/A $ 62,494 N/A Market value of loans pledged as collateral under long-term debt facilities $ 376,502 N/A $ 815,580 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 4 22 56 48 Unpaid principal balance of loans with 90+ day delinquencies $ 5,212 $ 52,725 $ 32,830 $ 7,847 Fair value of loans with 90+ day delinquencies (2) $ 4,086 N/A $ 28,319 $ 7,847 Number of loans in foreclosure (3) 5 9 37 3 Unpaid principal balance of loans in foreclosure $ 5,301 $ 12,623 $ 42,152 $ 4,472 Fair value of loans in foreclosure (2) $ 4,153 N/A $ 37,641 $ 4,472 December 31, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (2) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure (3) 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (2) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (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, 2022 and December 31, 2021. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 453,140 $ 455,168 Fair value of loans $ 451,804 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at March 31, 2022 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2022 and 2021. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (19,681) $ (730) (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 .

Multifamily Loans

Multifamily Loans	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Multifamily Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at March 31, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,347,069 $ — $ — $ — $ 1,347,069 Held-for-investment at fair value — 222,213 3,872,316 1,775,539 5,870,068 Total Residential Loans $ 1,347,069 $ 222,213 $ 3,872,316 $ 1,775,539 $ 7,217,137 December 31, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 At March 31, 2022, we owned mortgage servicing rights associated with $1.29 billion (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at March 31, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 1,611 2,196 Unpaid principal balance $ 1,369,366 $ 1,813,865 Fair value of loans $ 1,347,069 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,334,272 $ 1,838,797 Weighted average coupon 3.63 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 616 $ 2,923 Fair value of loans with 90+ day delinquencies $ 615 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three months ended March 31, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 2,115,191 $ 3,096,048 Principal balance of loans sold 1,827,364 2,275,832 Principal balance of loans transferred to HFI 687,192 — Net market valuation gains (losses) recorded (2) (31,451) 23,429 (1) Includes $102 million of loans acquired through calls of three 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, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,524 4,870 11,654 Unpaid principal balance $ 248,814 $ 4,123,176 $ 1,865,735 Fair value of loans $ 222,213 $ 3,872,316 $ 1,775,538 Weighted average coupon 1.88 % 3.28 % 4.52 % Delinquency information Number of loans with 90+ day delinquencies (1) 34 16 1,291 Unpaid principal balance of loans with 90+ day delinquencies $ 6,996 $ 12,879 $ 220,402 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 256 Unpaid principal balance of loans in foreclosure $ 902 $ 1,484 $ 43,467 December 31, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.87 % 3.39 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 684,491 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) 6,325 (270,731) (43,768) 7,613 (2,578) (3,566) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 505,889 — $ — $ — $ 505,889 Held-for-investment at fair value — 3,038,939 917,979 291,971 4,248,889 Total Business Purpose Loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 $ 4,754,778 December 31, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding single-family rental loans at March 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% with original maturities of 30 years. The outstanding bridge loans held-for-investment at March 31, 2022 were first-lien, interest-only loans with original maturities of six At March 31, 2022, we had a $792 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 442,727 $ 411,938 $ 253,098 $ 133,229 Principal balance of loans acquired 61,892 2,983 — — Principal balance of loans sold to third parties 331,502 — — 8,877 Fair value of loans transferred from HFS to HFI (1) — — 169,404 — Mortgage banking activities income (loss) recorded (2) (24,468) 2,375 10,248 542 Investment fair value changes recorded (3) — (759) — 3,304 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations and the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (2) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three months ended March 31, 2022 and 2021, we recorded loan origination fee income of $14 million and $6 million, respectively, through Mortgage banking activities, net on our consolidated statements of income. (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 single-family rental loans and bridge loans owned by these entities. The following table provides the activity of business purpose loans held-for-investment at CAFL during the three months ended March 31, 2022 and 2021. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (191,903) $ (1,384) $ (60,901) $ — (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . REO See Note 12 for detail on BPL loans transferred to REO during 2022. 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, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2022 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 239 1,116 1,384 1,375 Unpaid principal balance $ 518,230 $ 3,083,716 $ 921,208 $ 288,823 Fair value of loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 Weighted average coupon 4.76 % 5.15 % 6.38 % 6.77 % Weighted average remaining loan term (years) 11 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 66,685 N/A $ 62,494 N/A Market value of loans pledged as collateral under long-term debt facilities $ 376,502 N/A $ 815,580 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 4 22 56 48 Unpaid principal balance of loans with 90+ day delinquencies $ 5,212 $ 52,725 $ 32,830 $ 7,847 Fair value of loans with 90+ day delinquencies (2) $ 4,086 N/A $ 28,319 $ 7,847 Number of loans in foreclosure (3) 5 9 37 3 Unpaid principal balance of loans in foreclosure $ 5,301 $ 12,623 $ 42,152 $ 4,472 Fair value of loans in foreclosure (2) $ 4,153 N/A $ 37,641 $ 4,472 December 31, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (2) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure (3) 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (2) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (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, 2022 and December 31, 2021. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 453,140 $ 455,168 Fair value of loans $ 451,804 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at March 31, 2022 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2022 and 2021. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (19,681) $ (730) (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, 2022
Investments, Debt and Equity Securities [Abstract]
Real Estate Securities	Real Estate Securities We invest in real estate securities that we create and retain from our Sequoia securitizations or acquire from third parties. The following table presents the fair values of our real estate securities by type at March 31, 2022 and December 31, 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2022 December 31, 2021 Trading $ 173,684 $ 170,619 Available-for-sale 185,198 206,792 Total Real Estate Securities $ 358,882 $ 377,411 Our real estate securities include mortgage-backed securities, which are presented in accordance with their general position within a securitization structure based on their rights to cash flows. Senior securities are those interests in a securitization that generally have the first right to cash flows and are last in line to absorb losses. Mezzanine securities are interests that are generally subordinate to senior securities in their rights to receive cash flows, and have subordinate securities below them that are first to absorb losses. Subordinate securities are all interests below mezzanine. Exclusive of our re-performing loan securities, nearly all of our residential securities are supported by collateral that was designated as prime at the time of issuance. Trading Securities We elected the fair value option for certain securities and classify them as trading securities. Our trading securities include both residential and multifamily mortgage-backed securities, and our residential securities also include securities backed by re-performing loans ("RPL"). The following table presents the fair value of trading securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Senior Interest-only securities (1) $ 34,206 $ 21,787 Total Senior 34,206 21,787 Subordinate RPL securities 63,164 65,140 Multifamily securities 9,008 10,549 Other third-party residential securities 67,306 73,143 Total Subordinate 139,478 148,832 Total Trading Securities $ 173,684 $ 170,619 (1) Includes $20 million and $15 million of Sequoia certificated mortgage servicing rights at March 31, 2022 and December 31, 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 234,732 235,306 Total Trading Securities $ 234,732 $ 235,306 (1) Our senior trading securities include interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three months ended March 31, 2022 and 2021. Table 9.4 – Trading Securities Activity Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of securities acquired (1) $ — $ 15,880 Principal balance of securities sold (1) — 34,743 Net market valuation gains (losses) recorded (2) (1,456) 21,349 (1) For the three months ended March 31, 2022 and 2021, excludes zero and $2 million of securities bought and sold during the same quarter, respectively. (2) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income. AFS Securities The following table presents the fair value of our available-for-sale securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Subordinate Sequoia securities $ 108,768 $ 127,542 Multifamily securities 15,316 22,166 Other third-party residential securities 61,114 57,084 Total Subordinate 185,198 206,792 Total AFS Securities $ 185,198 $ 206,792 The following table provides the activity of available-for-sale securities during the three months ended March 31, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended March 31, (In Thousands) 2022 2021 Fair value of securities acquired $ 10,000 $ 1,078 Fair value of securities sold — 2,200 Principal balance of securities called 14,486 3,444 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, 2022, we had $12 million of AFS securities with contractual maturities less than five years, $4 million with contractual maturities greater than five years but less than ten years, and the remainder of our AFS securities had contractual maturities greater than ten years. The following table presents the components of carrying value (which equals fair value) of AFS securities at March 31, 2022 and December 31, 2021. Table 9.7 – Carrying Value of AFS Securities March 31, 2022 (In Thousands) Total Principal balance $ 230,201 Credit reserve (29,901) Unamortized discount, net (63,206) Amortized cost 137,094 Gross unrealized gains 50,854 Gross unrealized losses (2,045) CECL allowance (705) Carrying Value $ 185,198 December 31, 2021 (In Thousands) Total Principal balance $ 242,852 Credit reserve (27,555) Unamortized discount, net (76,023) Amortized cost 139,274 Gross unrealized gains 67,815 Gross unrealized losses (297) CECL allowance — Carrying Value $ 206,792 The following table presents the changes for the three months ended March 31, 2022, 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 $ 27,555 $ 76,023 Amortization of net discount — (8,470) Realized credit losses (88) — Acquisitions — — Sales, calls, other (343) (1,570) Transfers to (release of) credit reserves, net 2,777 (2,777) Ending Balance $ 29,901 $ 63,206 AFS Securities with Unrealized Losses The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at March 31, 2022 and December 31, 2021. Table 9.9 – Components of Fair Value of AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Unrealized Fair Amortized Unrealized Fair (In Thousands) March 31, 2022 $ 29,500 $ (1,958) $ 27,542 $ 1,600 $ (87) $ 1,513 December 31, 2021 7,078 (251) 6,827 1,600 (46) 1,554 At March 31, 2022, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 82 AFS securities, of which six were in a unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2021, our consolidated balance sheet included 85 AFS securities, of which four were in an unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Credit Losses Gross unrealized losses on our AFS securities were $2 million at March 31, 2022. We evaluate all securities in an unrealized loss position to determine if the impairment is credit-related (resulting in an allowance for credit losses recorded in earnings) or non-credit-related (resulting in an unrealized loss through other comprehensive income). At March 31, 2022, we did not intend to sell any of our AFS securities that were in an unrealized loss position, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost basis, which may be at their maturity. We review our AFS securities that are in an unrealized loss position to identify those securities with losses based on an assessment of changes in expected cash flows for such securities, which considers recent security performance and expected future performance of the underlying collateral. At March 31, 2022, our current expected credit loss ("CECL") allowance related to our AFS securities was $0.7 million. AFS securities for which an allowance is recognized have experienced, or are expected to experience, credit-related adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of security credit losses. The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at March 31, 2022. Table 9.10 – Significant Credit Quality Indicators March 31, 2022 Subordinate Securities Default rate 0.7% Loss severity 20% The following table details the activity related to the allowance for credit losses for AFS securities for the three months ended March 31, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended March 31, 2022 (In Thousands) Beginning balance allowance for credit losses $ — Additions to allowance for credit losses on securities for which credit losses were not previously recorded 705 Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period — 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 $ 705 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, 2022 and 2021. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2022 2021 Gross realized gains - sales $ — $ 200 Gross realized gains - calls 1,914 2,408 Gross realized losses - sales — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 1,914 $ 2,608 During the three months ended March 31, 2022, we called three of our unconsolidated Sequoia entities, and purchased $102 million (unpaid principal balance) of loans from the securitization trusts. In association with these calls, we realized a $0.3 million gain on the securities we owned from these securitizations. The remaining realized gains were from third-party securities we owned that were called during the first quarter of 2022.

Other Investments

Other Investments	3 Months Ended
	Mar. 31, 2022
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) March 31, 2022 December 31, 2021 Servicer advance investments $ 302,837 $ 350,923 HEIs 227,133 192,740 Excess MSRs 43,023 44,231 Strategic investments 40,524 35,702 Mortgage servicing rights 19,739 12,438 Other 2,325 5,935 Total Other Investments $ 635,581 $ 641,969 Servicer advance investments We and a third-party co-investor, through two partnerships (“SA Buyers”) consolidated by us, purchased the outstanding servicer advances and excess MSRs related to a portfolio of legacy residential mortgage-backed securitizations serviced by the co-investor (Refer to Note 10 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding the transactions). At March 31, 2022, we had funded $148 million of total capital to the SA Buyers (see Note 16 for additional detail). At March 31, 2022, our servicer advance investments had a carrying value of $303 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $12.70 billion. The outstanding servicer advance receivables associated with this investment were $266 million at March 31, 2022, which were financed with short-term non-recourse securitization debt (see Note 13 for additional detail on this debt). The servicer advance receivables were comprised of the following types of advances at March 31, 2022 and December 31, 2021. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) March 31, 2022 December 31, 2021 Principal and interest advances $ 87,083 $ 94,148 Escrow advances (taxes and insurance advances) 138,465 172,847 Corporate advances 40,401 43,958 Total Servicer Advance Receivables $ 265,949 $ 310,953 We account for our servicer advance investments at fair value and during the three months ended March 31, 2022 and 2021, we recorded $5 million and $3 million of interest income, respectively, through Other interest income, and recorded a net market valuation loss of $3 million and loss of $0.2 million, respectively, through Investment fair value changes, net in our consolidated statements of income. HEIs In 2019, we began purchasing home equity investment contracts from a third party under a flow purchase agreement. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by a deed of trust or a mortgage. Our investments in HEIs allow us to share in both home price appreciation and depreciation of the associated property. During the third quarter of 2021 , we amended our original flow purchase agreement with the third party and committed to purchase $125 million of HEIs from the date of the amended agreement, and during the first quarter of 2022, we exercised an option and committed to acquire an additional $125 million of HEIs. At March 31, 2022, we had acquired $117 million of HEIs cumulatively, including $70 million of our $250 million commitment, under the third-party flow purchase agreement. As of March 31, 2022 , we owned $74 million of HEIs at Redwood and consolidated $153 million of HEIs through the HEI securitization entity. We account for these investments under the fair value option and during the three months ended March 31, 2022 and 2021, we recorded a net market valuation gain of $1 million and a net market valuation gain of $5 million, respectively, related to HEIs owned at Redwood through Investment fair value changes, net on our consolidated statements of income. We consolidate the HEI securitization in accordance with GAAP and have elected to account for it under the CFE election. During the three months ended March 31, 2022, we recorded net market valuation gains of $3 million (including $1 million of interest expense) related to our net investment in the HEI securitization entity through Investment fair value changes, net on our consolidated statements of income. Strategic Investments Strategic investments represent investments we have made in companies either through our RWT Horizons venture investment platform or separately at a corporate level. At March 31, 2022, we had made a total of 21 investments in companies through RWT Horizons with a total carrying value of $25 million, and two corporate-level investments, including our strategic investment in Churchill Finance. During the three months ended March 31, 2022, we recorded $0.1 million of Other income from our strategic investments. Excess MSRs In association with our servicer advance investments described above, we (through our consolidated SA Buyers) invested in excess MSRs associated with the same portfolio of legacy residential mortgage-backed securitizations. Additionally, we own excess MSRs associated with specified pools of multifamily loans. We account for our excess MSRs at fair value and during the three months ended March 31, 2022 and 2021, we recognized $4 million and $3 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $1 million and $2 million, respectively, 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, 2022, we retained $5 million of MSRs from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries. At March 31, 2022 and December 31, 2021, our MSRs had a fair value of $20 million and $12 million, respectively, and were associated with loans with an aggregate principal balance of $2.36 billion and $2.12 billion, respectively. During the three months ended March 31, 2022 and 2021, including net market valuation gains and losses on our MSRs, we recorded net income of $4.3 million and $1 million, respectively, through Other income on our consolidated statements of income related to our MSRs.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The following table presents the fair value and notional amount of our derivative financial instruments at March 31, 2022 and December 31, 2021. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 11,412 $ 460,000 $ 611 $ 161,500 TBAs 95,631 4,400,000 2,880 2,440,000 Interest rate futures 2,907 197,800 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 2,110 187,895 4,633 971,631 Total Assets $ 112,060 $ 5,245,695 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ (650) $ 66,000 $ (1,251) $ 283,100 TBAs (64,883) 3,535,000 (658) 870,000 Interest rate futures (236) 83,000 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (14,491) 912,748 (503) 404,190 Total Liabilities $ (80,260) $ 4,596,748 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 31,800 $ 9,842,443 $ 23,150 $ 6,861,921 Risk Management Derivatives To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. At March 31, 2022, we were party to swaps with an aggregate notional amount of $526 million, TBA agreements with an aggregate notional amount of $7.94 billion, and interest rate futures contracts with an aggregate notional amount of $281 million. At December 31, 2021, we were party to swaps and swaptions with an aggregate notional amount of $2.10 billion, futures with an aggregate notional amount of $72 million and TBA agreements with an aggregate notional amount of $3.31 billion. For the three months ended March 31, 2022 and 2021, risk management derivatives had a net market valuation gain of $92 million, and a net market valuation gain of $93 million, respectively. 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 LPCs and IRLCs that qualify as derivatives are recorded at their estimated fair values. For the three months ended March 31, 2022 and 2021, LPCs and IRLCs had a net market valuation loss of $42 million and loss of $52 million, respectively, that 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 income was $75 million and $76 million at March 31, 2022 and December 31, 2021, respectively. We are amortizing this loss into interest expense over the remaining term of the debt they were originally hedging. As of March 31, 2022, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months. The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the three months ended March 31, 2022 and 2021. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended March 31, (In Thousands) 2022 2021 Net interest expense on cash flows hedges $ — $ — Realized net losses reclassified from other comprehensive income (1,018) (1,018) Total Interest Expense $ (1,018) $ (1,018) Derivative Counterparty Credit Risk As discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At March 31, 2022, we assessed this risk as remote and did not record an associated specific valuation adjustment. At March 31, 2022, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	3 Months Ended
	Mar. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) March 31, 2022 December 31, 2021 Investment receivable $ 49,313 $ 82,781 Accrued interest receivable 48,717 47,515 REO 27,179 36,126 Deferred tax asset 20,867 20,867 Operating lease right-of-use assets 17,917 18,772 Margin receivable 17,165 7,269 Fixed assets and leasehold improvements (1) 10,105 9,019 Other 10,939 8,768 Total Other Assets $ 202,202 $ 231,117 (1) Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $8 million at March 31, 2022. Accrued expenses and other liabilities at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2022 December 31, 2021 Payable to non-controlling interests $ 47,939 $ 42,670 Margin payable 41,966 24,368 Accrued interest payable 38,647 39,297 Accrued operating expenses 30,581 4,377 Current accounts payable 21,734 8,273 Operating lease liabilities 20,218 20,960 Accrued compensation 16,990 74,636 Residential loan and MSR repurchase reserve 9,529 9,306 Guarantee obligations 7,046 7,459 Bridge loan holdbacks 2,536 3,109 Other 7,264 11,333 Total Accrued Expenses and Other Liabilities $ 244,450 $ 245,788 Refer to Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional descriptions of our other assets and liabilities. 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, 2022, we had met all margin calls due. 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, 2022. Table 12.3 – REO Activity Three Months Ended March 31, 2022 (In Thousands) Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total Balance at beginning of period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 Transfers to REO 272 — 1,047 — 1,319 Liquidations (1) (382) (504) (750) (9,250) (10,886) Changes in fair value, net 82 443 95 — 620 Balance at End of Period $ 13,040 $ — $ 2,420 $ 11,719 $ 27,179 (1) For the three months ended March 31, 2022, REO liquidations resulted in $0.6 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL SFR entities at March 31, 2022 and December 31, 2021. Table 12.4 – REO Assets Number of REO assets Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total At March 31, 2022 4 — 25 2 31 At December 31, 2021 5 2 24 3 34

Short-Term Debt

Short-Term Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Short-Term Debt	Short-Term Debt We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At March 31, 2022, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at March 31, 2022 and December 31, 2021. Table 13.1 – Short-Term Debt March 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 $ 1,223,247 $ 2,750,000 2.13 % 8/2022-3/2023 288 Business purpose loan warehouse 1 95,161 350,000 3.45 % 3/2023 349 Real estate securities repo 4 75,445 — 1.25 % 4/2022-6/2022 33 Total Short-Term Debt Facilities 12 1,393,853 Servicer advance financing 1 253,393 350,000 2.25 % 11/2022 216 Total Short-Term Debt $ 1,647,246 December 31, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Total Short-Term Debt $ 2,177,362 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over 1-month SOFR or 1- or 3-month LIBOR. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at March 31, 2022 and December 31, 2021. Table 13.2 – Collateral for Short-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 1,334,272 $ 1,838,797 Business purpose loans 129,179 167,687 Real estate securities On balance sheet 5,539 5,823 Sequoia securitizations (1) 59,862 61,525 Freddie Mac K-Series securitization (1) 31,921 31,657 Total real estate securities owned 97,322 99,005 Restricted cash and other assets 1,962 1,962 Total Collateral for Short-Term Debt Facilities 1,562,735 2,107,451 Cash 9,615 6,480 Restricted cash 24,170 25,420 Servicer advances 302,837 310,953 Total Collateral for Servicer Advance Financing 336,622 342,853 Total Collateral for Short-Term Debt $ 1,899,357 $ 2,450,304 (1) Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. For the three months ended March 31, 2022, the average balance of our short-term debt facilities was $1.73 billion. At March 31, 2022 and December 31, 2021, accrued interest payable on our short-term debt facilities was $2 million and $2 million, respectively. Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At March 31, 2022, the accrued interest payable balance on this financing was $0.2 million and the unamortized capitalized commitment costs were $0.7 million. We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $1 million at March 31, 2022. At both March 31, 2022 and December 31, 2021, we had no outstanding borrowings on this facility. Remaining Maturities of Short-Term Debt The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at March 31, 2022. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ — $ 1,223,247 $ 1,223,247 Business purpose loans — — 95,161 95,161 Real estate securities 43,675 31,770 — 75,445 Total Secured Short-Term Debt 43,675 31,770 1,318,408 1,393,853 Servicer advance financing — — 253,393 253,393 Total Short-Term Debt $ 43,675 $ 31,770 $ 1,571,801 $ 1,647,246

Asset-Backed Securities Issued

Asset-Backed Securities Issued	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	Asset-Backed Securities Issued ABS issued represents securities issued by non-recourse securitization entities we consolidate under GAAP. The majority of our ABS issued is carried at fair value under the CFE election (see Note 4 for additional detail) with the remainder carried at amortized cost. The carrying values of ABS issued by our consolidated securitization entities at March 31, 2022 and December 31, 2021, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued March 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 243,879 $ 3,868,206 $ 2,998,376 $ 1,463,505 $ 416,672 $ 127,904 $ 9,118,542 Interest-only certificates 321 48,561 170,661 16,494 9,491 — 245,528 Market valuation adjustments (23,899) (288,847) (156,196) (9,956) (6,280) (6,526) (491,704) ABS Issued, Net $ 220,301 $ 3,627,920 $ 3,012,841 $ 1,470,043 $ 419,883 $ 121,378 $ 8,872,366 Range of weighted average interest rates, by series (3) 0.57% to 2.05% 2.46% to 5.03% 2.64% to 5.44% 3.50% to 4.75% 3.55 % 3.27 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 17 16 3 1 1 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total (Dollars in Thousands) Certificates with principal balance $ 259,505 $ 3,353,073 $ 3,264,766 $ 1,535,638 $ 418,700 $ 138,792 $ 8,970,474 Interest-only certificates 619 32,749 193,725 11,714 10,184 — 248,991 Market valuation adjustments (32,243) (2,774) 16,407 41,111 12,973 (1,382) 34,092 ABS Issued, Net $ 227,881 $ 3,383,048 $ 3,474,898 $ 1,588,463 $ 441,857 $ 137,410 $ 9,253,557 Range of weighted average interest rates, by series (3) 0.23% to 1.44% 2.40% to 5.03% 2.64% to 5.24% 3.50% to 4.75% 3.41 % 3.31 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 16 16 3 1 1 (1) Includes $270 million (principal balance) of ABS issued by a CAFL bridge securitization trust sponsored by Redwood and accounted for at amortized cost at March 31, 2022 and December 31, 2021. (2) Includes $131 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at March 31, 2022 and December 31, 2021, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and HEI securitization entities are subject to early redemption and interest rate step-ups as described below. During the third quarter of 2021, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest bridge loans (presented within CAFL in table 14.1 above), which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $270 million (principal balance) of ABS issued to third parties and retained the remaining beneficial ownership interest in the trust. The ABS were issued at a discount and we have elected to account for the ABS issued at amortized cost. At March 31, 2022, the principal balance of the ABS issued was $270 million, and the unamortized debt discount and deferred issuance costs were $2 million, for a net carrying value of $268 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 $292 million of bridge loans, $8 million of restricted cash and $6 million of other assets at March 31, 2022. The securitization is structured with $300 million of total funding capacity and a feature to allow reinvestment of loan payoffs for the first 30 months of the transaction (through March 2024), unless an amortization event occurs prior to the expiration of the 30-month reinvestment period. Amortization trigger events include, among other events, delinquency rates or default rates exceeding specified thresholds for three consecutive periods, or the effective advance rate exceeding a specified threshold. During the third quarter of 2021, we consolidated the assets and liabilities of the HEI securitization entity formed in connection with the securitization of HEIs, which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $146 million (principal balance) of ABS issued to third parties and retained a portion of the remaining beneficial ownership interest in the trust. We elected to account for the entity under the CFE election and account for the ABS issued at fair value, with the entire change in fair value of the ABS issued (including accrued interest) recorded through Investment fair value changes, net on our consolidated statements of income. The ABS issued by the HEI securitization entity are subject to an optional redemption in September 2023, and beginning in September 2024 the interest rate on the ABS issued increases by 2% through final maturity in 2052. During the third quarter of 2020, we transferred all of the subordinate securities we owned from two consolidated re-performing loan securitization VIEs sponsored by Freddie Mac SLST to a re-securitization trust, which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $210 million (principal balance) of ABS issued to third parties and retained 100% of the remaining beneficial ownership interest in the trust through ownership of a subordinate security issued by the trust. The ABS was issued at a discount and we have elected to account for the ABS issued at amortized cost. At March 31, 2022, the principal balance of the ABS issued was $131 million, and the debt discount and deferred issuance costs were $2 million, for a net carrying value of $129 million. The stated coupon of the ABS issued was 4.75% at issuance and the final stated maturity occurs in July 2059. The ABS issued are subject to an optional redemption in July 2022 and in July 2023 the ABS interest rate steps up to 7.75%. The actual maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption prior to the stated maturity according to the terms of the respective governing documents of each ABS issuing entity. As a result, the actual maturity of ABS issued may occur earlier than the stated maturity. At March 31, 2022, the majority of the ABS issued and outstanding had contractual maturities beyond five years. See Note 4 for detail on the carrying value components of the collateral for ABS issued and outstanding. The following table summarizes the accrued interest payable on ABS issued at March 31, 2022 and December 31, 2021. Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2022 December 31, 2021 Legacy Sequoia $ 107 $ 99 Sequoia 9,598 8,452 CAFL 10,342 11,030 Freddie Mac SLST (1) 4,405 4,630 Freddie Mac K-Series 1,232 1,190 Total Accrued Interest Payable on ABS Issued $ 25,684 $ 25,401 (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, 2022
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, 2022 and December 31, 2021. Table 15.1 – Long-Term Debt March 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 $ 133,034 $ (208) $ 132,826 N/A 4.21 % 9/2024 CAFL Facility B 102,351 (278) 102,073 N/A 4.21 % 2/2025 Facility G 81,995 (313) 81,682 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility H 430,026 (755) 429,271 $ 600,000 L + 2.50% N/A Recourse BPL Financing Facility F 301,200 (205) 300,995 450,000 SOFR + 2.25% 9/2023 Facility I 263,836 — 263,836 450,000 SOFR + 3.24% 6/2023 Total Long-Term Debt Facilities 1,312,442 (1,759) 1,310,683 Convertible notes 4.75% convertible senior notes 198,629 (1,571) 197,058 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (1,879) 148,321 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,182) 168,910 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (768) 138,732 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,972,863 $ (9,159) $ 1,963,704 December 31, 2021 (Dollars in Thousands) Borrowings Unamortized Deferred Issuance Costs / Discount Net Carrying Value Limit Weighted Average Interest Rate (1) Final Maturity Facilities Recourse Subordinate Securities Financing Facility A $ 144,385 $ (313) $ 144,072 N/A 4.21 % 9/2024 CAFL Facility B 102,351 (353) 101,998 N/A 4.21 % 2/2025 Facility G 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility H 307,215 (507) 306,708 $ 400,000 L + 2.75% N/A Recourse BPL Financing Facility F 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility I 110,148 — 110,148 450,000 L + 3.35% 6/2023 Total Long-Term Debt Facilities 990,155 (1,672) 988,483 Convertible notes 4.75% convertible senior notes 198,629 (1,836) 196,793 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,072) 148,128 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,384) 168,708 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (779) 138,721 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,650,576 $ (9,743) $ 1,640,833 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or 1-month SOFR plus an applicable spread. Refer to Note 15 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, for a full description of our long-term debt. Non-Recourse BPL Financing Facility During the three months ended March 31, 2022, we amended facility H (see Table 15.1 above) to increase the borrowing limit from $400 million to $600 million. Recourse BPL Financing Facilities During the three months ended March 31, 2022, we amended the interest rate for Facilities F and I (see Table 15.1 above) to be indexed to a spread over one-month SOFR compared to a LIBOR-indexed spread at December 31, 2021. The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at March 31, 2022 and December 31, 2021. Table 15.2 – Collateral for Long-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Collateral Type Bridge loans $ 815,580 $ 554,597 Single-family rental loans 376,502 244,703 Real estate securities Sequoia securitizations (1) 226,974 247,227 CAFL securitizations (1) 264,774 260,405 Total Collateral for Long-Term Debt $ 1,683,830 $ 1,306,932 (1) Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. The following table summarizes the accrued interest payable on long-term debt at March 31, 2022 and December 31, 2021. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Long-term debt facilities $ 1,589 $ 815 Convertible notes 4.75% convertible senior notes 1,206 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,948 2,474 Trust preferred securities and subordinated notes 607 581 Total Accrued Interest Payable on Long-Term Debt $ 10,134 $ 11,330

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At March 31, 2022, we were obligated under seven non-cancelable operating leases with expiration dates through 2031 for $23 million of cumulative lease payments. Our operating lease expense was $1 million each for the three-month periods ended March 31, 2022 and 2021. The following table presents our future lease commitments at March 31, 2022. Table 16.1 – Future Lease Commitments by Year (In Thousands) March 31, 2022 2022 (9 months) $ 3,228 2023 4,428 2024 4,338 2025 3,475 2026 3,420 2027 and thereafter 4,553 Total Lease Commitments 23,442 Less: Imputed interest (3,224) Operating Lease Liabilities $ 20,218 During the three months ended March 31, 2022, we did not enter into any new office leases. At March 31, 2022, our operating lease liabilities were $20 million, which were a component of Accrued expenses and other liabilities Other assets We determined that none of our leases contained an implicit interest rate and used a discount rate equal to our incremental borrowing rate on a collateralized basis to determine the present value of our total lease payments. As such, we determined the applicable discount rate for each of our leases using a swap rate plus an applicable spread for borrowing arrangements secured by our real estate loans and securities for a length of time equal to the remaining lease term on the date of adoption. At March 31, 2022, the weighted-average remaining lease term and weighted-average discount rate for our leases was 6 years and 5.1%, respectively. Commitment to Fund Bridge Loans As of March 31, 2022, we had commitments to fund up to $792 million of additional advances on existing bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before we fund the commitment. At March 31, 2022, we carried a $1 million contingent liability related to these commitments to fund construction advances. During the three months ended March 31, 2022, we recorded a net market valuation loss of $0.2 million related to this liability through Mortgage banking activities, net on our consolidated statements of income. During the three months ended March 31, 2021, we recorded a net market valuation gain of $1 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 10 for additional detail). In connection with this investment, we are required to fund future net servicer advances related to the underlying mortgage loans. The actual amount of net servicer advances we may fund in the future is subject to significant uncertainty and will be based on the credit and prepayment performance of the underlying loans. Commitment to Acquire HEIs In the third quarter of 2021, we amended an existing flow purchase agreement with a third party and committed to acquire $125 million of HEIs from the date of the amended agreement. In the first quarter of 2022, we exercised an option and committed to acquire an additional $125 million of HEIs from the third-party HEI originator. At March 31, 2022, we had acquired $70 million HEIs of our $250 million commitment under this flow purchase agreement. 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 San Francisco Bay Area urban communities. At March 31, 2022, we had funded $0.3 million of this commitment. This investment is included in Other Investments on our Consolidated Balance Sheets. In 2021, we entered into commitments to fund $5 million to each of two different RWT Horizons investments. At March 31, 2022, we had funded $4 million of these commitments. These investments are included in Other Investments on our Consolidated Balance Sheets. 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, 2022, the maximum potential amount of future payments we could be required to make under these arrangements was $44 million and this amount was partially collateralized by assets we transferred to pledged accounts and is presented as pledged collateral in Other assets on our consolidated balance sheets. We have no recourse to any third parties that would allow us to recover any amounts related to our obligations under the arrangements. At March 31, 2022, we had incurred less than $0.1 million of losses under these arrangements. For the three months ended March 31, 2022 and 2021, other income related to these arrangements was $0.5 million and $1 million, respectively, and net market valuation changes related to these investments were less than $0.1 million of gains and $0.1 million of losses, respectively. All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at March 31, 2022, the loans had an unpaid principal balance of $504 million and a weighted average FICO score of 756 (at origination) and LTV ratio of 74% (at origination). At March 31, 2022, $14 million of the loans were 90 days or more delinquent, of which two of these loans with an unpaid principal balance of $0.2 million were in foreclosure. At March 31, 2022, the carrying value of our guarantee obligation was $7 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, 2022 and December 31, 2021, assets of such SPEs totaled $34 million, and liabilities of such SPEs totaled $7 million. Loss Contingencies — Residential Repurchase Reserve We maintain a repurchase reserve for potential obligations arising from representation and warranty violations related to residential loans we have sold to securitization trusts or third parties and for conforming residential loans associated with MSRs that we have purchased from third parties. We do not originate residential loans and we believe the initial risk of loss due to loan repurchases (i.e., due to a breach of representations and warranties) would generally be a contingency to the companies from whom we acquired the loans. However, in some cases, for example, where loans were acquired from companies that have since become insolvent, repurchase claims may result in our being liable for a repurchase obligation. Additionally, for certain loans we sold during the second quarter of 2020 that were previously held for investment, we have a direct obligation to repurchase these loans in the event of any early payment defaults (or "EPDs") by the underlying mortgage borrowers within certain specified periods following the sales. At March 31, 2022 and December 31, 2021, our repurchase reserve associated with our residential loans and MSRs was $10 million and $9 million, respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. During both the three months ended March 31, 2022 and 2021, we received zero repurchase requests and repurchased zero loans. During the three months ended March 31, 2022 and 2021, we recorded repurchase provisions of $0.2 million and $0.1 million, respectively, that were recorded in Mortgage banking activities, net, Investment fair value changes, net, and Other income on our consolidated statements of income. Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the litigation matters described in Note 16

Equity

Equity	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 67,503 $ (76,430) $ 76,336 $ (80,557) Other comprehensive (loss) income (17,873) — 10,986 — Amounts reclassified from other (692) 1,018 (2,795) 1,018 Net current-period other comprehensive (loss) income (18,565) 1,018 8,191 1,018 Balance at End of Period $ 48,938 $ (75,412) $ 84,527 $ (79,539) The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021. Table 17.2 – 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 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 705 $ (374) Gain on sale of AFS securities Realized gains, net (1,397) (2,421) $ (692) $ (2,795) 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, 2022, we issued 5,232,869 common shares for net proceeds of $67 million under this program. During the three months ended March 31, 2022, we increased the capacity of this program to $175 million, all of which remained outstanding for future offerings under this program as of March 31, 2022. Direct Stock Purchase and Dividend Reinvestment Plan During the three months ended March 31, 2022, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At March 31, 2022, approximately 6 million shares remained outstanding for future offerings under this plan. Earnings per Common Share The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2022 and 2021. Table 17.3 – Basic and Diluted Earnings per Common Share Three Months Ended March 31, (In Thousands, except Share Data) 2022 2021 Basic Earnings per Common Share: Net income attributable to Redwood $ 30,915 $ 97,257 Less: Dividends and undistributed earnings allocated to participating securities (1,209) (3,294) Net income allocated to common shareholders $ 29,706 $ 93,963 Basic weighted average common shares outstanding 119,884,172 112,276,842 Basic Earnings per Common Share $ 0.25 $ 0.84 Diluted Earnings per Common Share: Net income attributable to Redwood $ 30,915 $ 97,257 Less: Dividends and undistributed earnings allocated to participating securities (1,348) (2,951) Add back: Interest expense on convertible notes for the period, net of tax 4,582 7,007 Net income allocated to common shareholders $ 34,149 $ 101,313 Weighted average common shares outstanding 119,884,172 112,276,842 Net effect of dilutive equity awards 290,831 195,568 Net effect of assumed convertible notes conversion to common shares 20,331,154 28,566,875 Diluted weighted average common shares outstanding 140,506,157 141,039,285 Diluted Earnings per Common Share $ 0.24 $ 0.72 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 and 2021, certain of our convertible notes were determined to be dilutive and were included in the calculation of diluted EPS under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator. For the three months ended March 31, 2021, 8,235,721 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, 2022 and 2021, the number of outstanding equity awards that were antidilutive totaled 17,154 and 15,460, respectively. Stock Repurchases Our Board of Directors previously approved an authorization for the repurchase of up to $100 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, 2022, we did not repurchase any shares. At March 31, 2022, $78 million of the current authorization remained available for the repurchase of shares of our common stock and we also continued to be authorized to repurchase outstanding debt securities.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At March 31, 2022 and December 31, 2021, 5,708,420 and 5,958,390 shares of common stock, respectively, were available for grant under our Incentive Plan. The unamortized compensation cost of awards issued under the Incentive Plan, which are settled by delivery of shares of common stock and purchases under the Employee Stock Purchase Plan, totaled $44 million at March 31, 2022, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2022 (In Thousands) Restricted Stock Awards Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 84 $ 3,589 $ 26,473 $ 12,237 $ — $ 42,383 Equity grants — 2,484 3,850 — 323 6,657 Performance-based valuation adjustment — — — — — — Equity grant forfeitures (5) (242) — — — (247) Equity compensation expense (66) (471) (2,949) (1,258) (81) (4,825) Unrecognized Compensation Cost at End of Period $ 13 $ 5,360 $ 27,374 $ 10,979 $ 242 $ 43,968 At March 31, 2022, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Awards ("RSAs") At March 31, 2022 and December 31, 2021, there were 1,551 and 28,141 shares of RSAs outstanding, respectively. Restrictions on these shares lapse during 2022. During the three months ended March 31, 2022, there were no RSAs granted, restrictions on 26,249 RSAs lapsed and those shares were distributed, and 341 RSAs were forfeited. Restricted Stock Units ("RSUs") At March 31, 2022 and December 31, 2021, there were 498,223 and 431,072 RSUs outstanding, respectively. During the three months ended March 31, 2022, there were 206,179 RSUs granted, 117,725 RSUs distributed, and 21,303 RSUs forfeited. Unvested RSUs at March 31, 2022 vest through 2026. Deferred Stock Units (“DSUs”) At March 31, 2022 and December 31, 2021, there were 4,526,420 and 4,022,088 DSUs outstanding, respectively, of which 1,965,990 and 1,469,903, respectively, had vested. During the three months ended March 31, 2022, there were 645,870 DSUs granted, 141,538 DSUs distributed, and zero DSUs forfeited. Unvested DSUs at March 31, 2022 vest through 2026. Performance Stock Units (“PSUs”) At March 31, 2022 and December 31, 2021, the target number of PSUs that were unvested was 1,267,849 and 1,473,883, 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 18 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. For 206,034 target PSU awards that were granted in December 2018, the performance vesting period ended on January 1, 2022. These 2018 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, 2022 and December 31, 2021, 586,762 and 569,728 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at March 31, 2022.

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021. Table 19.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2022 2021 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (68,822) $ (29,273) Trading securities (2) 2,786 721 Risk management derivatives (3) 73,354 88,964 Other income (expense), net (4) 617 1,023 Total residential mortgage banking activities, net 7,935 61,435 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) (25,193) 10,248 Risk management derivatives (3) 17,033 3,858 Bridge loans, at fair value 2,135 1,044 Other income, net (5) 14,405 6,022 Total business purpose mortgage banking activities, net 8,380 21,172 Mortgage Banking Activities, Net $ 16,315 $ 82,607 (1) For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchase expense, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income

Other Income	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
Other Income	Other Income The following table presents the components of Other income recorded in our consolidated statements of income for the three months ended March 31, 2022 and 2021. Table 20.1 – Other Income Three Months Ended March 31, (In Thousands) 2022 2021 MSR income, net (1) $ 4,303 $ 697 Risk share income 460 882 Bridge loan fees 990 693 Other 230 1,571 Other Income, Net $ 5,983 $ 3,843 (1) Includes servicing fees and fair value changes for MSRs, net.

General and Administrative Expe

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three months ended March 31, 2022 and 2021 are presented in the following table. Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended March 31, (In Thousands) 2022 2021 General and Administrative Expenses Fixed compensation expense $ 14,628 $ 11,805 Annual variable compensation expense 3,357 18,669 Long-term incentive award expense (1) 5,660 4,169 Acquisition-related equity compensation expense (2) — 1,212 Systems and consulting 3,184 2,977 Office costs 2,025 1,808 Accounting and legal 1,675 714 Corporate costs 864 691 Other 3,461 1,506 Total General and Administrative Expenses 34,854 43,551 Loan Acquisition Costs Commissions 2,614 1,263 Underwriting costs 1,372 1,685 Transfer and holding costs 479 611 Total Loan Acquisition Costs 4,465 3,559 Other Expenses Amortization of purchase-related intangible assets 3,534 3,873 Other 551 223 Total Other Expenses 4,085 4,096 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 43,404 $ 51,206 (1) For the three months ended March 31, 2022 and 2021, long-term incentive award expense includes $5 million and $3 million, respectively, of expense for awards settleable in shares of our common stock and $1 million and $1 million, respectively, of expense for awards settleable in cash. (2) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest in 2019. The grant date fair value of these restricted stock awards was $10 million, which was recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP. Long Term Cash-Based Awards During the three months ended March 31, 2022, $2 million of long-term cash-based retention awards were granted to certain executive and non-executive employees that will vest and be paid over a three

Taxes

Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Taxes	Taxes We believe that we have met all requirements for qualification as a REIT for federal income tax purposes. To qualify as a REIT, the Company must distribute at least 90% of its annual REIT taxable income and meet certain other requirements that relate to, among others, the assets it holds, the income it generates, and the composition of its stockholders. For the three months ended March 31, 2022 and 2021, we recognized a benefit from income taxes of $2 million and a provision for income taxes of $12 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at March 31, 2022 and 2021. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2022 March 31, 2021 Federal statutory rate 21.0 % 21.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % Differences in taxable (loss) income from GAAP income (20.4) % (12.5) % Change in valuation allowance 2.1 % (3.7) % Dividends paid deduction (19.9) % (2.8) % Effective Tax Rate (8.6) % 10.6 %

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information Redwood operates in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies. For a full description of our segments, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2021. 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, 2022 and 2021. Table 23.1 – Business Segment Financial Information 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 6,031 2,273 53,991 (9,193) 53,102 Non-interest income 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, net 7,935 8,955 2,457 (588) 18,759 General and administrative expenses (6,101) (10,472) (3,133) (15,148) (34,854) 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 (expense) income, net $ 104 $ (3,890) $ 7,300 $ (2,033) $ 1,481 Three Months Ended March 31, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 7,579 $ 2,855 $ 116,509 $ 1,362 $ 128,305 Interest expense (4,747) (1,599) (85,945) (10,261) (102,552) Net interest income 2,832 1,256 30,564 (8,899) 25,753 Non-interest income Mortgage banking activities, net 61,435 21,172 — — 82,607 Investment fair value changes, net — — 45,761 (674) 45,087 Other income, net — 122 3,574 147 3,843 Realized gains, net — — 2,716 — 2,716 Total non-interest income (loss), net 61,435 21,294 52,051 (527) 134,253 General and administrative expenses (12,689) (10,194) (3,164) (17,504) (43,551) Loan acquisition costs (1,404) (1,492) (659) (4) (3,559) Other expenses (6) (3,777) (330) 17 (4,096) Provision for income taxes (9,486) (1,321) (736) — (11,543) Segment Contribution $ 40,682 $ 5,766 $ 77,726 $ (26,917) Net Income $ 97,257 Non-cash amortization income (expense), net $ (3) $ (4,098) $ (234) $ (1,895) $ (6,230) The following table presents the components of Corporate/Other for the three months ended March 31, 2022 and 2021. Table 23.2 – Components of Corporate/Other Three Months Ended March 31, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,012 $ 8 $ 1,020 $ 1,348 $ 14 $ 1,362 Interest expense (701) (9,512) (10,213) (875) (9,386) (10,261) Net interest income 311 (9,504) (9,193) 473 (9,372) (8,899) Non-interest income Investment fair value changes, net (714) — (714) (699) 25 (674) Other income — 126 126 — 147 147 Total non-interest income, net (714) 126 (588) (699) 172 (527) General and administrative expenses — (15,148) (15,148) — (17,504) (17,504) Loan acquisition costs — — — — (4) (4) Other expenses — — — — 17 17 Total $ (403) $ (24,526) $ (24,929) $ (226) $ (26,691) $ (26,917) (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, 2022 and December 31, 2021. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Lending Mortgage Banking Investment Portfolio Corporate/ Total March 31, 2022 Residential loans $ 1,101,006 $ — $ 5,893,918 $ 222,213 $ 7,217,137 Business purpose loans — 496,280 4,258,498 — 4,754,778 Multifamily loans — — 451,804 — 451,804 Real estate securities 7,714 — 351,168 — 358,882 Other investments — — 595,056 40,525 635,581 Intangible assets — 38,027 — — 38,027 Total assets 1,234,502 607,991 11,546,776 864,023 14,253,292 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Other investments — — 606,267 35,702 641,969 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn April 2022, we entered into a definitive agreement to acquire Riverbend Funding, LLC and its subsidiaries in an all-cash transaction. The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at March 31, 2022 and December 31, 2021, and for the three months ended March 31, 2022 and 2021. 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, 2021. 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, 2022 and results of operations for all periods presented. The results of operations for the three months ended March 31, 2022 should not be construed as indicative of the results to be expected for the full year.
Principles of Consolidation	Principles of Consolidation In accordance with GAAP, we determine whether we must consolidate transferred financial assets and variable interest entities (“VIEs”) for financial reporting purposes. We currently consolidate the assets and liabilities of certain Sequoia securitization entities issued prior to 2012 ("Legacy Sequoia"), certain entities formed during and after 2012 in connection with the securitization of Redwood Select prime loans and Redwood Choice expanded-prime loans ("Sequoia"), entities formed in connection with the securitization of CoreVest single-family rental and bridge loans ("CAFL") and 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 Multifamily loans held-for-investment, at fair value, the underlying single-family rental and bridge loans at the consolidated CAFL entities are shown under Business purpose loans held-for-investment, at fair value, and the underlying HEIs at the consolidated HEI securitization entity are shown under Other investments, at fair value on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, 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 14 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships.
Use of Estimates	Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Newly Adopted Accounting Standards Updates ("ASUs") In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)." This new guidance simplifies the accounting for convertible debt by reducing the number of accounting models to separately present certain conversion features in equity. This new guidance was effective for fiscal years beginning after December 31, 2021. We adopted this guidance in the first quarter of 2022, which did not have a material impact on our consolidated financial statements. Other Recent Accounting Pronouncements On March 28, 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method," which will expand companies' abilities to hedge the benchmark interest rate risk of portfolios of financial assets (or beneficial interests) in a fair value hedge. The ASU expands the use of the portfolio layer method (previously referred to as the last-of-layer method) to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. The ASU also permits both prepayable and non-prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. The ASU further requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. On March 31, 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the current expected credit loss ("CECL") model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through March 31, 2022, we have not elected to apply the optional expedients and exceptions to any of our existing contracts, hedging relationships, or other transactions. We have an established cross-functional group that has evaluated our exposure to LIBOR, reviewed relevant contracts and has monitored regulatory updates to assess the potential impact to our business, processes and technology from the ultimate full cessation of LIBOR in 2023, and has established a LIBOR transition plan to facilitate an orderly transition to alternative reference rates. We continue to remain on track with our LIBOR transition plan, which requires different solutions depending on the underlying asset or liability with LIBOR exposure. At March 31, 2022, our primary LIBOR exposure included the following: $966 million of repo or warehouse debt, $381 million of interest rate swaps, $858 million of bridge loans, and $140 million of trust preferred securities and subordinated notes debt. Since December 31, 2021, c ertain of our contracts, such as interest rate swaps, have experienced an orderly market transition and we have transitioned a substantial portion of our derivative positions off of LIBOR-benchmarks. Other contracts, such as warehouse debt agreements, require bilateral amendments, many of which we have amended or are currently in the process of amending. We anticipate most of these facilities will be amended in 2022, with sufficient time remaining to resolve the remainder. In early 2022, we began benchmarking all newly originated bridge loans to the Secured Overnight Financing Rate (“SOFR”), and our existing portfolio of bridge loans are short-dated and we expect the vast majority to mature before the LIBOR cessation date in 2023. Additionally, as the result of recent 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, 2022
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, 2022. Table 2.1 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at March 31, 2022 Carrying Value at March 31, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 45,300 $ (15,909) $ 29,391 7 Broker network 18,100 (11,162) 6,938 5 Non-compete agreements 9,500 (8,308) 1,192 3 Tradenames 4,000 (3,494) 506 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 81,300 $ (43,273) $ 38,027 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, 2022 2022 (9 months) $ 9,266 2023 10,091 2024 7,075 2025 6,471 2026 5,124 Total Future Intangible Asset Amortization $ 38,027

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Offsetting of Financial Assets, Liabilities, and Collateral	The table below presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at March 31, 2022 and December 31, 2021. Table 3.1 – Offsetting of Financial Assets, Liabilities, and Collateral Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount March 31, 2022 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 11,412 $ — $ 11,412 $ (650) $ — $ 10,762 TBAs 95,631 — 95,631 (52,993) (41,706) 932 Futures 2,907 — 2,907 (236) (151) 2,520 Total Assets $ 109,950 $ — $ 109,950 $ (53,879) $ (41,857) $ 14,214 Liabilities (2) Interest rate agreements $ (650) $ — $ (650) $ 650 $ — $ — TBAs (64,883) — (64,883) 52,993 9,628 (2,262) Futures (236) — (236) 236 — — Loan warehouse debt (426,055) — (426,055) 426,055 — — Total Liabilities $ (491,824) $ — $ (491,824) $ 479,934 $ 9,628 $ (2,262) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 18,929 $ — $ 18,929 $ (1,251) $ (16,046) $ 1,632 TBAs 2,880 — 2,880 (633) (704) 1,543 Futures 25 — 25 (25) — — Total Assets $ 21,834 $ — $ 21,834 $ (1,909) $ (16,750) $ 3,175 Liabilities (2) Interest rate agreements $ (1,251) $ — $ (1,251) $ 1,251 $ — $ — TBAs $ (658) $ — $ (658) $ 633 $ 15 $ (10) Futures (905) — (905) 25 880 — Loan warehouse debt (572,720) — (572,720) 572,720 — — Total Liabilities $ (575,534) $ — $ (575,534) $ 574,629 $ 895 $ (10) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty (which may, in certain circumstances, be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our consolidated balance sheets as assets or liabilities, respectively.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 222,213 $ 3,872,316 $ — $ 1,775,538 $ — $ — $ — $ 5,870,067 Business purpose loans, held-for-investment — — 3,330,910 — — — — 3,330,910 Multifamily loans, held-for-investment — — — — 451,804 — — 451,804 Other investments — — — — — 336,282 153,247 489,529 Cash and cash equivalents — — — — — 9,684 — 9,684 Restricted cash 148 4 8,260 — — 24,170 5,086 37,668 Accrued interest receivable 194 11,945 14,763 5,584 1,362 1,029 — 34,877 Other assets — — 16,229 2,421 — 7,563 50 26,263 Total Assets $ 222,555 $ 3,884,265 $ 3,370,162 $ 1,783,543 $ 453,166 $ 378,728 $ 158,383 $ 10,250,802 Short-term debt $ — $ — $ — $ — $ — $ 253,393 $ — $ 253,393 Accrued interest payable 106 9,598 10,342 3,888 1,232 183 — 25,349 Accrued expenses and other liabilities — 4 1,386 — — 26,406 23,252 51,048 Asset-backed securities issued 220,301 3,627,920 3,012,841 1,470,043 419,883 — 121,378 8,872,366 Total Liabilities $ 220,407 $ 3,637,522 $ 3,024,569 $ 1,473,931 $ 421,115 $ 279,982 $ 144,630 $ 9,202,156 Value of our investments in VIEs (1) $ 1,912 $ 244,396 $ 342,343 $ 307,916 $ 31,921 $ 98,746 $ 13,753 $ 1,040,987 Number of VIEs 20 17 16 3 1 3 1 61 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Multifamily loans, held-for-investment — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) $ 2,634 $ 245,417 $ 339,419 $ 301,795 $ 31,657 $ 102,540 $ 10,451 $ 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, represent the fair value of our economic interests in the VIEs only for consolidated VIEs we account for under the CFE election. CAFL includes SFR loan securitizations we account for under the CFE election and a bridge loan securitization for which we did not make the CFE election. As of March 31, 2022 and December 31, 2021, the fair value of our interests in the CAFL SFR securitizations were $306 million and $302 million, respectively, and our net carrying value in the CAFL Bridge securitization was $37 million and $38 million, respectively. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of March 31, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $437 million and $445 million, respectively, and the carrying value of the ABS issued and carried at amortized historical cost was $129 million and $143 million, respectively. The following table presents income (loss) from these VIEs for the three months ended March 31, 2022 and 2021. Table 4.2 – Income (Loss) from Consolidated VIEs 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 Three Months Ended March 31, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,348 $ 15,483 $ 48,873 $ 20,159 $ 4,786 $ 4,222 $ — $ 94,871 Interest expense (875) (12,106) (39,011) (17,371) (4,356) (1,286) — (75,005) Net interest income 473 3,377 9,862 2,788 430 2,936 — 19,866 Non-interest income Investment fair value changes, net (699) 4,898 (286) 4,117 8,921 (1,246) — 15,705 Total non-interest income, net (699) 4,898 (286) 4,117 8,921 (1,246) — 15,705 General and administrative expenses — — — — — (38) — (38) Other expenses — — — — — (330) — (330) Income (loss) from Consolidated VIEs $ (226) $ 8,275 $ 9,576 $ 6,905 $ 9,351 $ 1,322 $ — $ 35,203
Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents information related to securitization transactions that occurred during the three months ended March 31, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans transferred $ — $ 875,879 Trading securities retained, at fair value — 6,549 AFS securities retained, at fair value — 1,078
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, 2022 and 2021 between us and the unconsolidated VIEs sponsored by us and accounted for as sales since 2012. Table 4.4 – Cash Flows Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, (In Thousands) 2022 2021 Proceeds from new transfers $ — $ 904,390 MSR fees received 864 1,607 Funding of compensating interest, net (16) (100) Cash flows received on retained securities 14,126 8,629
Assumptions Related to Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three months ended March 31, 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 12 % 12 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.22 % 0.22 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents additional information at March 31, 2022 and December 31, 2021, related to unconsolidated VIEs sponsored by Redwood and accounted for as sales since 2012. Table 4.6 – Unconsolidated VIEs Sponsored by Redwood (In Thousands) March 31, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 24,246 $ 18,214 Subordinate securities, classified as AFS 108,768 127,542 Mortgage servicing rights 9,127 6,450 Maximum loss exposure (1) $ 142,141 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,491,763 $ 4,959,234 Principal balance of loans 30+ days delinquent 27,286 30,594 (1) Maximum loss exposure from our involvement with unconsolidated VIEs pertains to the carrying value of our securities and MSRs retained from these VIEs and represents estimated losses that would be incurred under severe, hypothetical circumstances, such as if the value of our interests and any associated collateral declines to zero. This does not include, for example, any potential exposure to representation and warranty claims associated with our initial transfer of loans into a securitization.
Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents key economic assumptions for assets retained from unconsolidated VIEs and the sensitivity of their fair values to immediate adverse changes in those assumptions at March 31, 2022 and December 31, 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood March 31, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at March 31, 2022 $ 9,127 $ 24,246 $ 108,768 Expected life (in years) (2) 5 6 11 Prepayment speed assumption (annual CPR) (2) 16 % 14 % 22 % Decrease in fair value from: 10% adverse change $ 396 $ 986 $ 1,228 25% adverse change 912 2,318 3,068 Discount rate assumption (2) 12 % 16 % 6 % Decrease in fair value from: 100 basis point increase $ 282 $ 656 $ 9,022 200 basis point increase 547 1,273 17,064 Credit loss assumption (2) N/A 0.03 % 0.03 % Decrease in fair value from: 10% higher losses N/A $ — $ 45 25% higher losses N/A — 113 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A $ — $ 1,528 25% higher losses N/A — 3,819 (1) Senior securities included $24 million and $18 million of interest-only securities at March 31, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) March 31, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 9,960 $ 3,572 Subordinate 215,908 228,083 Total Mortgage-Backed Securities 225,868 231,655 Excess MSR 9,579 10,400 Total Investments in Third-Party Sponsored VIEs $ 235,447 $ 242,055

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale at fair value $ 1,347,036 $ 1,347,036 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment 5,870,068 5,870,068 5,747,150 5,747,150 Business purpose loans, held-for-sale 505,889 505,889 358,309 358,309 Business purpose loans, held-for-investment 4,248,889 4,248,889 4,432,680 4,432,680 Multifamily loans 451,804 451,804 473,514 473,514 Real estate securities 358,882 358,882 377,411 377,411 Servicer advance investments (1) 302,837 302,837 350,923 350,923 MSRs (1) 19,739 19,739 12,438 12,438 Excess MSRs (1) 43,023 43,023 44,231 44,231 HEIs (1) 227,133 227,133 192,740 192,740 Other investments (1) 11,824 11,824 12,663 12,663 Cash and cash equivalents 409,272 409,272 450,485 450,485 Restricted cash 73,549 73,549 80,999 80,999 Derivative assets 112,060 112,060 26,467 26,467 REO (2) 27,179 30,787 36,126 39,272 Margin receivable (2) 17,165 17,165 7,269 7,269 Liabilities Short-term debt $ 1,647,246 $ 1,647,246 $ 2,177,362 $ 2,177,362 Margin payable (3) 41,966 41,966 24,368 24,368 Guarantee obligation (3) 7,046 6,579 7,459 7,133 HEI securitization non-controlling interest 23,253 23,253 17,035 17,035 Derivative liabilities 80,260 80,260 3,317 3,317 ABS issued net Fair value 8,475,868 8,475,868 8,843,147 8,843,147 Amortized cost 396,498 379,930 410,410 410,471 Other long-term debt, net (4) 1,310,683 1,307,867 988,483 989,570 Convertible notes, net (4) 514,289 518,738 513,629 537,300 Trust preferred securities and subordinated notes, net (4) 138,732 104,625 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (4) The liabilities are included in Long-Term debt, net of our consolidated balance sheets.
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at March 31, 2022 and December 31, 2021, as well as the fair value hierarchy of the valuation inputs used to measure fair value. Table 5.2 – Assets and Liabilities Measured at Fair Value on a Recurring Basis March 31, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,217,104 $ — $ — $ 7,217,104 Business purpose loans 4,754,778 — — 4,754,778 Multifamily loans 451,804 — — 451,804 Real estate securities 358,882 — — 358,882 Servicer advance investments 302,837 — — 302,837 MSRs 19,739 — — 19,739 Excess MSRs 43,023 — — 43,023 HEIs 227,133 — — 227,133 Other investments 11,824 — — 11,824 Derivative assets 112,060 98,538 11,412 2,110 Liabilities HEI securitization non-controlling interest $ 23,253 $ — $ — $ 23,253 Derivative liabilities 80,260 65,119 650 14,491 ABS issued 8,475,868 — — 8,475,868 December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 Liabilities HEI securitization non-controlling interest $ 17,035 $ — $ — $ 17,035 Derivative liabilities 3,317 1,563 1,251 503 ABS issued 8,843,147 — — 8,843,147
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2022. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Multifamily Loans Trading Securities AFS Servicer Advance Investments Excess MSRs HEIs MSRs and Other Investments (In Thousands) Beginning balance - $ 7,592,398 $ 4,790,989 $ 473,514 $ 170,619 $ 206,792 $ 350,923 $ 44,231 $ 192,740 $ 25,101 Acquisitions 2,110,494 64,875 — 5,006 10,000 — — 40,141 5,793 Originations — 855,227 — — — — — — — Sales (1,849,874) (331,750) — — — — — — (1,762) Principal paydowns (297,480) (407,991) (2,029) (485) (22,564) (45,005) — (12,671) (30) Gains (losses) in net income, net (337,595) (216,300) (19,681) (1,456) 10,383 (3,081) (1,208) 6,923 3,020 Unrealized losses in OCI, net — — — — (19,413) — — — — Other settlements, net (1) (839) (272) — — — — — — (559) Ending balance - $ 7,217,104 $ 4,754,778 $ 451,804 $ 173,684 $ 185,198 $ 302,837 $ 43,023 $ 227,133 $ 31,563 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 680,749 Principal paydowns — — (520,949) Gains (losses) in net income, net (42,379) 6,218 (527,079) Other settlements, net (1) 25,868 — — Ending balance - March 31, 2022 $ (12,381) $ 23,253 $ 8,475,868 (1) Other settlements, net for residential and business purpose loans represents the transfer of loans to REO, and for derivatives, the transfer of the fair value of loan purchase or interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental loans. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments, forward sale commitments, and interest rate lock commitments, are presented on a net basis.
Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held and Included in Net Income	The following table presents the portion of gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at March 31, 2022 and 2021. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three months ended March 31, 2022 and 2021 are not included in this presentation. Table 5.4 – Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at March 31, 2022 and 2021 Included in Net Income Included in Net Income Three Months Ended March 31, (In Thousands) 2022 2021 Assets Residential loans at Redwood $ (35,397) $ (9,978) Business purpose loans (14,647) 5,104 Net investments in consolidated Sequoia entities (1) (4,981) 4,201 Net investments in consolidated Freddie Mac SLST entities (1) 2,940 4,088 Net investments in consolidated Freddie Mac K-Series entities (1) 264 8,921 Net investments in consolidated CAFL SFR entities (1) 4,048 370 Net investment in consolidated HEI securitization entity (1) 9,628 — Trading securities (1,401) 490 Servicer advance investments (3,081) (160) MSRs 3,526 756 Excess MSRs (1,208) (1,952) HEIs at Redwood 1,185 5,315 Loan purchase and interest rate lock commitments 2,050 1,053 Liabilities HEI securitization non-controlling interest $ (6,218) $ — Loan purchase commitments (14,442) (35,661) (1) Represents the portion of net gains or losses included in our consolidated statements of income related to loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at March 31, 2022 and 2021, which netted together represent the change in value of our investments at the consolidated VIEs, excluding REO.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis	The following table presents information on assets recorded at fair value on a non-recurring basis at March 31, 2022. 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, 2022. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at March 31, 2022 Gain (Loss) for March 31, 2022 Carrying Fair Value Measurements Using Three Months Ended Three Months Ended (In Thousands) Level 1 Level 2 Level 3 March 31, 2022 March 31, 2022 Assets REO $ 646 $ — $ — $ 646 $ — $ —
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, 2022 and 2021. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended March 31, (In Thousands) 2022 2021 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (27,199) $ 23,112 Residential loan purchase commitments (41,623) (52,385) Single-family rental loans held-for-sale, at fair value (24,468) 10,248 Single-family rental loan interest rate lock commitments (725) — Bridge loans 2,135 1,044 Trading securities (1) 2,786 721 Risk management derivatives, net 90,387 92,822 Total mortgage banking activities, net (2) $ 1,293 $ 75,562 Investment Fair Value Changes, Net Residential loans held-for-sale, at fair value (called Sequoia loans) $ (4,252) $ 317 Bridge loans held-for-investment (2,143) 3,304 Trading securities (4,242) 20,628 Servicer advance investments (3,081) (160) Excess MSRs (1,208) (1,953) Net investments in Legacy Sequoia entities (3) (714) (699) Net investments in Sequoia entities (3) (3,822) 4,898 Net investments in Freddie Mac SLST entities (3) 3,036 4,117 Net investment in Freddie Mac K-Series entity (3) 264 8,921 Net investments in CAFL SFR entities (3) 4,048 (286) Net investment in HEI securitization entity (3) 3,411 — HEIs at Redwood 1,192 5,315 Other investments 123 310 Risk management derivatives, net 1,973 — Credit (losses) recoveries on AFS securities (705) 375 Total investment fair value changes, net $ (6,120) $ 45,087 Other Income MSRs $ 2,968 $ (866) Total other income (4) $ 2,968 $ (866) Total Market Valuation Gains (Losses), Net $ (1,859) $ 119,783 (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the mark-to-market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases expense, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3) Includes changes in fair value of the residential loans held-for-investment, securitized HEIs, REO and the ABS issued at the entities, which netted together represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election.
Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value	The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments March 31, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets Residential loans, at fair value: Jumbo fixed-rate loans $ 772,917 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.94 - $ 2.94 $ 2.94 Whole loan spread to swap rate 225 - 225 bps 225 bps Called loan dollar price $ 100 — $ 100 $ 100 Jumbo loans committed to sell 574,119 Whole loan committed sales price $ 95.92 - $ 102.19 $ 98.23 Loans held by Legacy Sequoia (2) 222,213 Liability price N/A N/A Loans held by Sequoia (2) 3,872,316 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,775,539 Liability price N/A N/A Business purpose loans: Single-family rental loans 505,889 Senior credit spread 140 - 175 bps 155 bps Subordinate credit spread 180 - 1,434 bps 377 bps Senior credit support 36 - 37 % 36 % IO discount rate 8 - 14 % 9 % Prepayment rate (annual CPR) 3 - 25 % 7 % Non-securitizable loan dollar price $ 78 - $ 100 $ 98 Single-family rental loans held by CAFL (2) 3,038,939 Liability price N/A N/A Bridge loans 1,209,950 Whole loan discount rate 4 - 15 % 7 % Senior credit spread 180 - 180 bps 180 bps Subordinate credit spread 225 - 790 bps 498 bps Senior credit support 47 - 47 % 47 % Residual certificate discount rate 11 - 11 % 11 % Multifamily loans held by Freddie Mac K-Series (2) 451,804 Liability price N/A N/A Trading and AFS securities 358,882 Discount rate — - 18 % 8 % Prepayment rate (annual CPR) 8 - 55 % 20 % Default rate — - 27 % 4 % Loss severity — - 50 % 25 % CRT dollar price $ 88 - $ 106 $ 95 Servicer advance investments 302,837 Discount rate 2 - 4 % 3 % Prepayment rate (annual CPR) 14 - 30 % 17 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 17 bps 5 bps MSRs 19,739 Discount rate 12 - 12 % 12 % Prepayment rate (annual CPR) 10 - 29 % 16 % Per loan annual cost to service $ 94 - $ 94 $ 94 Excess MSRs 43,023 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 18 - 31 % 21 % Excess mortgage servicing income 10 - 17 bps 11 bps Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) March 31, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) HEI 73,886 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 24 % 17 % Home price appreciation 3 - 4 % 3 % HEIs held by HEI securitization entity 153,247 Liability price N/A N/A N/A REO 646 Loss severity 4 - 24 % 12 % Liabilities Residential loan purchase commitments, net 12,322 Prepayment rate (annual CPR) 20 - 20 % 20 % Whole loan spread to TBA price $ 2.94 - $ 2.94 $ 2.94 Whole loan spread to swap rate 225 - 225 bps 225 bps Pull-through rate 20 - 100 % 73 % Committed sales price $ 95.92 - $ 102.29 $ 98.18 Single-family rental interest rate lock commitments 59 Senior credit spread 140 - 140 bps 140 bps Subordinate credit spread 180 - 1,434 bps 331 bps Senior credit support 37 - 37 % 37 % IO discount rate 8 - 8 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Pull-through rate 100 100 % 100 % ABS issued (2) : At consolidated Sequoia entities 3,848,221 Discount rate — - 18 % 5 % Prepayment rate (annual CPR) 7 - 45 % 25 % Default rate — - 11 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 2,745,104 Discount rate 2 - 12 % 5 % Prepayment rate (annual CPR) 3 - 3 % 3 % Default rate 5 - 20 % 6 % Loss severity 30 - 30 % 30 % At consolidated Freddie Mac SLST entities 1,341,282 Discount rate 3 - 7 % 4 % Prepayment rate (annual CPR) 6 - 7 % 6 % Default rate 9 - 10 % 9 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 419,883 Discount rate 3 - 8 % 3 % At consolidated HEI securitization entity (4) 121,378 Discount rate 7 - 12 % 7 % Prepayment rate (annual CPR) 20 - 20 % 20 % Default rate 10 - 10 % 10 % Loss severity 30 - 30 % 30 % Home price appreciation 3 - 4 % 3 % Footnotes to Table 5.7 (1) The weighted average input values for all loan types are based on the unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) The fair value of the loans and HEIs held by consolidated entities was based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At March 31, 2022, 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 $246 million, $306 million, $437 million, $32 million, and $14 million, respectively. (3) Represents the estimated average duration of outstanding servicer advances at a given point in time (not taking into account new advances made with respect to the pool).

Residential Loans (Tables)

Residential Loans (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,347,069 $ — $ — $ — $ 1,347,069 Held-for-investment at fair value — 222,213 3,872,316 1,775,539 5,870,068 Total Residential Loans $ 1,347,069 $ 222,213 $ 3,872,316 $ 1,775,539 $ 7,217,137 December 31, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 505,889 — $ — $ — $ 505,889 Held-for-investment at fair value — 3,038,939 917,979 291,971 4,248,889 Total Business Purpose Loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 $ 4,754,778 December 31, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding single-family rental loans at March 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% with original maturities of 30 years. The outstanding bridge loans held-for-investment at March 31, 2022 were first-lien, interest-only loans with original maturities of six At March 31, 2022, we had a $792 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 442,727 $ 411,938 $ 253,098 $ 133,229 Principal balance of loans acquired 61,892 2,983 — — Principal balance of loans sold to third parties 331,502 — — 8,877 Fair value of loans transferred from HFS to HFI (1) — — 169,404 — Mortgage banking activities income (loss) recorded (2) (24,468) 2,375 10,248 542 Investment fair value changes recorded (3) — (759) — 3,304 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations and the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (2) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three months ended March 31, 2022 and 2021, we recorded loan origination fee income of $14 million and $6 million, respectively, through Mortgage banking activities, net on our consolidated statements of income. (3) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (191,903) $ (1,384) $ (60,901) $ — (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2022 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 239 1,116 1,384 1,375 Unpaid principal balance $ 518,230 $ 3,083,716 $ 921,208 $ 288,823 Fair value of loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 Weighted average coupon 4.76 % 5.15 % 6.38 % 6.77 % Weighted average remaining loan term (years) 11 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 66,685 N/A $ 62,494 N/A Market value of loans pledged as collateral under long-term debt facilities $ 376,502 N/A $ 815,580 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 4 22 56 48 Unpaid principal balance of loans with 90+ day delinquencies $ 5,212 $ 52,725 $ 32,830 $ 7,847 Fair value of loans with 90+ day delinquencies (2) $ 4,086 N/A $ 28,319 $ 7,847 Number of loans in foreclosure (3) 5 9 37 3 Unpaid principal balance of loans in foreclosure $ 5,301 $ 12,623 $ 42,152 $ 4,472 Fair value of loans in foreclosure (2) $ 4,153 N/A $ 37,641 $ 4,472 December 31, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (2) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure (3) 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (2) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (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, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 1,611 2,196 Unpaid principal balance $ 1,369,366 $ 1,813,865 Fair value of loans $ 1,347,069 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 1,334,272 $ 1,838,797 Weighted average coupon 3.63 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 616 $ 2,923 Fair value of loans with 90+ day delinquencies $ 615 $ 2,304 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, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of loans acquired (1) $ 2,115,191 $ 3,096,048 Principal balance of loans sold 1,827,364 2,275,832 Principal balance of loans transferred to HFI 687,192 — Net market valuation gains (losses) recorded (2) (31,451) 23,429 (1) Includes $102 million of loans acquired through calls of three 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, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment March 31, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,524 4,870 11,654 Unpaid principal balance $ 248,814 $ 4,123,176 $ 1,865,735 Fair value of loans $ 222,213 $ 3,872,316 $ 1,775,538 Weighted average coupon 1.88 % 3.28 % 4.52 % Delinquency information Number of loans with 90+ day delinquencies (1) 34 16 1,291 Unpaid principal balance of loans with 90+ day delinquencies $ 6,996 $ 12,879 $ 220,402 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 256 Unpaid principal balance of loans in foreclosure $ 902 $ 1,484 $ 43,467 December 31, 2021 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,583 4,300 11,986 Unpaid principal balance $ 264,057 $ 3,605,469 $ 1,932,241 Fair value of loans $ 230,455 $ 3,628,465 $ 1,888,230 Weighted average coupon 1.87 % 3.39 % 4.51 % Delinquency information Number of loans with 90+ day delinquencies (1) 32 18 1,208 Unpaid principal balance of loans with 90+ day delinquencies $ 7,482 $ 15,124 $ 212,961 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 10 2 241 Unpaid principal balance of loans in foreclosure $ 2,188 $ 1,624 $ 43,637 (1) For loans held at consolidated entities, the number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities.
Quarterly Activity of Residential Loans Held-for-Investment	The following table provides the activity of residential loans held-for-investment at consolidated entities during the three months ended March 31, 2022 and 2021. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Legacy Freddie Mac Legacy Freddie Mac (In Thousands) Sequoia Sequoia SLST Sequoia Sequoia SLST Fair value of loans transferred from HFS to HFI (1) N/A $ 684,491 N/A N/A $ — N/A Net market valuation gains (losses) recorded (2) 6,325 (270,731) (43,768) 7,613 (2,578) (3,566) (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. (2) For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 .

Business Purpose Loans (Tables)

Business Purpose Loans (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans March 31, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,347,069 $ — $ — $ — $ 1,347,069 Held-for-investment at fair value — 222,213 3,872,316 1,775,539 5,870,068 Total Residential Loans $ 1,347,069 $ 222,213 $ 3,872,316 $ 1,775,539 $ 7,217,137 December 31, 2021 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 1,845,282 $ — $ — $ — $ 1,845,282 Held-for-investment at fair value — 230,455 3,628,465 1,888,230 5,747,150 Total Residential Loans $ 1,845,282 $ 230,455 $ 3,628,465 $ 1,888,230 $ 7,592,432 Table 7.1 – Classifications and Carrying Values of Business Purpose Loans March 31, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 505,889 — $ — $ — $ 505,889 Held-for-investment at fair value — 3,038,939 917,979 291,971 4,248,889 Total Business Purpose Loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 $ 4,754,778 December 31, 2021 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 358,309 $ — $ — $ — $ 358,309 Held-for-investment at fair value — 3,488,074 666,364 278,242 4,432,680 Total Business Purpose Loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 $ 4,790,989 Nearly all of the outstanding single-family rental loans at March 31, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% with original maturities of 30 years. The outstanding bridge loans held-for-investment at March 31, 2022 were first-lien, interest-only loans with original maturities of six At March 31, 2022, we had a $792 million commitment to fund bridge loans. See Note 16 for additional information on this commitment. The following table provides the activity of business purpose loans at Redwood during the three months ended March 31, 2022 and 2021. Table 7.2 – Activity of Business Purpose Loans at Redwood Three Months Ended Three Months Ended (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 442,727 $ 411,938 $ 253,098 $ 133,229 Principal balance of loans acquired 61,892 2,983 — — Principal balance of loans sold to third parties 331,502 — — 8,877 Fair value of loans transferred from HFS to HFI (1) — — 169,404 — Mortgage banking activities income (loss) recorded (2) (24,468) 2,375 10,248 542 Investment fair value changes recorded (3) — (759) — 3,304 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations and the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (2) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three months ended March 31, 2022 and 2021, we recorded loan origination fee income of $14 million and $6 million, respectively, through Mortgage banking activities, net on our consolidated statements of income. (3) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded (1) $ (191,903) $ (1,384) $ (60,901) $ — (1) For loans held at our consolidated CAFL entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at March 31, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans March 31, 2022 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 239 1,116 1,384 1,375 Unpaid principal balance $ 518,230 $ 3,083,716 $ 921,208 $ 288,823 Fair value of loans $ 505,889 $ 3,038,939 $ 917,979 $ 291,971 Weighted average coupon 4.76 % 5.15 % 6.38 % 6.77 % Weighted average remaining loan term (years) 11 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 66,685 N/A $ 62,494 N/A Market value of loans pledged as collateral under long-term debt facilities $ 376,502 N/A $ 815,580 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 4 22 56 48 Unpaid principal balance of loans with 90+ day delinquencies $ 5,212 $ 52,725 $ 32,830 $ 7,847 Fair value of loans with 90+ day delinquencies (2) $ 4,086 N/A $ 28,319 $ 7,847 Number of loans in foreclosure (3) 5 9 37 3 Unpaid principal balance of loans in foreclosure $ 5,301 $ 12,623 $ 42,152 $ 4,472 Fair value of loans in foreclosure (2) $ 4,153 N/A $ 37,641 $ 4,472 December 31, 2021 SFR at Redwood SFR at Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 245 1,173 1,134 1,640 Unpaid principal balance $ 348,232 $ 3,340,949 $ 670,392 $ 274,617 Fair value of loans $ 358,309 $ 3,488,074 $ 666,364 $ 278,242 Weighted average coupon 4.73 % 5.17 % 6.91 % 7.05 % Weighted average remaining loan term (years) 12 6 1 1 Market value of loans pledged as collateral under short-term debt facilities $ 75,873 N/A $ 91,814 N/A Market value of loans pledged as collateral under long-term debt facilities $ 244,703 N/A $ 554,597 N/A Delinquency information Number of loans with 90+ day delinquencies (1) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (2) $ 4,238 N/A $ 14,218 $ — Number of loans in foreclosure (3) 7 9 28 — Unpaid principal balance of loans in foreclosure $ 5,473 $ 12,648 $ 18,043 $ — Fair value of loans in foreclosure (2) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The number of loans greater than 90 days delinquent includes loans in foreclosure. (2) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (3) May include loans that are less than 90 days delinquent.

Multifamily Loans (Tables)

Multifamily Loans (Tables)	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of the multifamily loans consolidated at Redwood at March 31, 2022 and December 31, 2021. Table 8.1 – Characteristics of Multifamily Loans (Dollars in Thousands) March 31, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 453,140 $ 455,168 Fair value of loans $ 451,804 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at March 31, 2022 were first-lien, fixed-rate loans that were originated in 2015. The following table provides the activity of multifamily loans held-for-investment during the three months ended March 31, 2022 and 2021. Table 8.2 – Activity of Multifamily Loans Held-for-Investment Three Months Ended March 31, (In Thousands) 2022 2021 Net market valuation gains (losses) recorded (1) $ (19,681) $ (730) (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, 2022
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, 2022 and December 31, 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) March 31, 2022 December 31, 2021 Trading $ 173,684 $ 170,619 Available-for-sale 185,198 206,792 Total Real Estate Securities $ 358,882 $ 377,411
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Senior Interest-only securities (1) $ 34,206 $ 21,787 Total Senior 34,206 21,787 Subordinate RPL securities 63,164 65,140 Multifamily securities 9,008 10,549 Other third-party residential securities 67,306 73,143 Total Subordinate 139,478 148,832 Total Trading Securities $ 173,684 $ 170,619 (1) Includes $20 million and $15 million of Sequoia certificated mortgage servicing rights at March 31, 2022 and December 31, 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 234,732 235,306 Total Trading Securities $ 234,732 $ 235,306 (1) Our senior trading securities include interest-only securities, for which there is no principal balance. The following table provides the activity of trading securities during the three months ended March 31, 2022 and 2021. Table 9.4 – Trading Securities Activity Three Months Ended March 31, (In Thousands) 2022 2021 Principal balance of securities acquired (1) $ — $ 15,880 Principal balance of securities sold (1) — 34,743 Net market valuation gains (losses) recorded (2) (1,456) 21,349 (1) For the three months ended March 31, 2022 and 2021, excludes zero and $2 million of securities bought and sold during the same quarter, respectively. (2) Net market valuation gains (losses) on trading securities are recorded through Investment fair value changes, net and Mortgage banking activities, net on our consolidated statements of income.
Available-for-Sale Securities by Collateral Type	The following table presents the fair value of our available-for-sale securities by position and collateral type at March 31, 2022 and December 31, 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) March 31, 2022 December 31, 2021 Subordinate Sequoia securities $ 108,768 $ 127,542 Multifamily securities 15,316 22,166 Other third-party residential securities 61,114 57,084 Total Subordinate 185,198 206,792 Total AFS Securities $ 185,198 $ 206,792 The following table provides the activity of available-for-sale securities during the three months ended March 31, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended March 31, (In Thousands) 2022 2021 Fair value of securities acquired $ 10,000 $ 1,078 Fair value of securities sold — 2,200 Principal balance of securities called 14,486 3,444
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, 2022 and December 31, 2021. Table 9.7 – Carrying Value of AFS Securities March 31, 2022 (In Thousands) Total Principal balance $ 230,201 Credit reserve (29,901) Unamortized discount, net (63,206) Amortized cost 137,094 Gross unrealized gains 50,854 Gross unrealized losses (2,045) CECL allowance (705) Carrying Value $ 185,198 December 31, 2021 (In Thousands) Total Principal balance $ 242,852 Credit reserve (27,555) Unamortized discount, net (76,023) Amortized cost 139,274 Gross unrealized gains 67,815 Gross unrealized losses (297) CECL allowance — Carrying Value $ 206,792
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, 2022, 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 $ 27,555 $ 76,023 Amortization of net discount — (8,470) Realized credit losses (88) — Acquisitions — — Sales, calls, other (343) (1,570) Transfers to (release of) credit reserves, net 2,777 (2,777) Ending Balance $ 29,901 $ 63,206
Components of Fair Value of Available for Sale Securities by Holding Periods	The following table presents the components comprising the total carrying value of residential AFS securities that were in a gross unrealized loss position at March 31, 2022 and December 31, 2021. Table 9.9 – Components of Fair Value of AFS Securities by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Amortized Unrealized Fair Amortized Unrealized Fair (In Thousands) March 31, 2022 $ 29,500 $ (1,958) $ 27,542 $ 1,600 $ (87) $ 1,513 December 31, 2021 7,078 (251) 6,827 1,600 (46) 1,554
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, 2022. Table 9.10 – Significant Credit Quality Indicators March 31, 2022 Subordinate Securities Default rate 0.7% Loss severity 20%
Activity of Allowance for Credit Losses for Available-for-sale Securities	The following table details the activity related to the allowance for credit losses for AFS securities for the three months ended March 31, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended March 31, 2022 (In Thousands) Beginning balance allowance for credit losses $ — Additions to allowance for credit losses on securities for which credit losses were not previously recorded 705 Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period — 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 $ 705
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, 2022 and 2021. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended March 31, (In Thousands) 2022 2021 Gross realized gains - sales $ — $ 200 Gross realized gains - calls 1,914 2,408 Gross realized losses - sales — — Total Realized Gains on Sales and Calls of AFS Securities, net $ 1,914 $ 2,608

Other Investments (Tables)

Other Investments (Tables)	3 Months Ended
	Mar. 31, 2022
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 10.1 – Components of Other Investments (In Thousands) March 31, 2022 December 31, 2021 Servicer advance investments $ 302,837 $ 350,923 HEIs 227,133 192,740 Excess MSRs 43,023 44,231 Strategic investments 40,524 35,702 Mortgage servicing rights 19,739 12,438 Other 2,325 5,935 Total Other Investments $ 635,581 $ 641,969
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at March 31, 2022 and December 31, 2021. Table 10.2 – Components of Servicer Advance Receivables (In Thousands) March 31, 2022 December 31, 2021 Principal and interest advances $ 87,083 $ 94,148 Escrow advances (taxes and insurance advances) 138,465 172,847 Corporate advances 40,401 43,958 Total Servicer Advance Receivables $ 265,949 $ 310,953

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 11.1 – Fair Value and Notional Amount of Derivative Financial Instruments March 31, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 11,412 $ 460,000 $ 611 $ 161,500 TBAs 95,631 4,400,000 2,880 2,440,000 Interest rate futures 2,907 197,800 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 2,110 187,895 4,633 971,631 Total Assets $ 112,060 $ 5,245,695 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ (650) $ 66,000 $ (1,251) $ 283,100 TBAs (64,883) 3,535,000 (658) 870,000 Interest rate futures (236) 83,000 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (14,491) 912,748 (503) 404,190 Total Liabilities $ (80,260) $ 4,596,748 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 31,800 $ 9,842,443 $ 23,150 $ 6,861,921
Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges	The following table illustrates the impact on interest expense of our interest rate agreements accounted for as cash flow hedges for the three months ended March 31, 2022 and 2021. Table 11.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended March 31, (In Thousands) 2022 2021 Net interest expense on cash flows hedges $ — $ — Realized net losses reclassified from other comprehensive income (1,018) (1,018) Total Interest Expense $ (1,018) $ (1,018)

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Other Assets	Other assets at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 12.1 – Components of Other Assets (In Thousands) March 31, 2022 December 31, 2021 Investment receivable $ 49,313 $ 82,781 Accrued interest receivable 48,717 47,515 REO 27,179 36,126 Deferred tax asset 20,867 20,867 Operating lease right-of-use assets 17,917 18,772 Margin receivable 17,165 7,269 Fixed assets and leasehold improvements (1) 10,105 9,019 Other 10,939 8,768 Total Other Assets $ 202,202 $ 231,117
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at March 31, 2022 and December 31, 2021 are summarized in the following table. Table 12.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) March 31, 2022 December 31, 2021 Payable to non-controlling interests $ 47,939 $ 42,670 Margin payable 41,966 24,368 Accrued interest payable 38,647 39,297 Accrued operating expenses 30,581 4,377 Current accounts payable 21,734 8,273 Operating lease liabilities 20,218 20,960 Accrued compensation 16,990 74,636 Residential loan and MSR repurchase reserve 9,529 9,306 Guarantee obligations 7,046 7,459 Bridge loan holdbacks 2,536 3,109 Other 7,264 11,333 Total Accrued Expenses and Other Liabilities $ 244,450 $ 245,788
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, 2022. Table 12.3 – REO Activity Three Months Ended March 31, 2022 (In Thousands) Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total Balance at beginning of period $ 13,068 $ 61 $ 2,028 $ 20,969 $ 36,126 Transfers to REO 272 — 1,047 — 1,319 Liquidations (1) (382) (504) (750) (9,250) (10,886) Changes in fair value, net 82 443 95 — 620 Balance at End of Period $ 13,040 $ — $ 2,420 $ 11,719 $ 27,179 (1) For the three months ended March 31, 2022, REO liquidations resulted in $0.6 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL SFR entities at March 31, 2022 and December 31, 2021. Table 12.4 – REO Assets Number of REO assets Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total At March 31, 2022 4 — 25 2 31 At December 31, 2021 5 2 24 3 34

Short-Term Debt (Tables)

Short-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 13.1 – Short-Term Debt March 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 $ 1,223,247 $ 2,750,000 2.13 % 8/2022-3/2023 288 Business purpose loan warehouse 1 95,161 350,000 3.45 % 3/2023 349 Real estate securities repo 4 75,445 — 1.25 % 4/2022-6/2022 33 Total Short-Term Debt Facilities 12 1,393,853 Servicer advance financing 1 253,393 350,000 2.25 % 11/2022 216 Total Short-Term Debt $ 1,647,246 December 31, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Total Short-Term Debt $ 2,177,362
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, 2022 and December 31, 2021. Table 13.2 – Collateral for Short-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 1,334,272 $ 1,838,797 Business purpose loans 129,179 167,687 Real estate securities On balance sheet 5,539 5,823 Sequoia securitizations (1) 59,862 61,525 Freddie Mac K-Series securitization (1) 31,921 31,657 Total real estate securities owned 97,322 99,005 Restricted cash and other assets 1,962 1,962 Total Collateral for Short-Term Debt Facilities 1,562,735 2,107,451 Cash 9,615 6,480 Restricted cash 24,170 25,420 Servicer advances 302,837 310,953 Total Collateral for Servicer Advance Financing 336,622 342,853 Total Collateral for Short-Term Debt $ 1,899,357 $ 2,450,304
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, 2022. Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities March 31, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ — $ 1,223,247 $ 1,223,247 Business purpose loans — — 95,161 95,161 Real estate securities 43,675 31,770 — 75,445 Total Secured Short-Term Debt 43,675 31,770 1,318,408 1,393,853 Servicer advance financing — — 253,393 253,393 Total Short-Term Debt $ 43,675 $ 31,770 $ 1,571,801 $ 1,647,246

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	The carrying values of ABS issued by our consolidated securitization entities at March 31, 2022 and December 31, 2021, along with other selected information, are summarized in the following table. Table 14.1 – Asset-Backed Securities Issued March 31, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 243,879 $ 3,868,206 $ 2,998,376 $ 1,463,505 $ 416,672 $ 127,904 $ 9,118,542 Interest-only certificates 321 48,561 170,661 16,494 9,491 — 245,528 Market valuation adjustments (23,899) (288,847) (156,196) (9,956) (6,280) (6,526) (491,704) ABS Issued, Net $ 220,301 $ 3,627,920 $ 3,012,841 $ 1,470,043 $ 419,883 $ 121,378 $ 8,872,366 Range of weighted average interest rates, by series (3) 0.57% to 2.05% 2.46% to 5.03% 2.64% to 5.44% 3.50% to 4.75% 3.55 % 3.27 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 17 16 3 1 1 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac K-Series HEI Total (Dollars in Thousands) Certificates with principal balance $ 259,505 $ 3,353,073 $ 3,264,766 $ 1,535,638 $ 418,700 $ 138,792 $ 8,970,474 Interest-only certificates 619 32,749 193,725 11,714 10,184 — 248,991 Market valuation adjustments (32,243) (2,774) 16,407 41,111 12,973 (1,382) 34,092 ABS Issued, Net $ 227,881 $ 3,383,048 $ 3,474,898 $ 1,588,463 $ 441,857 $ 137,410 $ 9,253,557 Range of weighted average interest rates, by series (3) 0.23% to 1.44% 2.40% to 5.03% 2.64% to 5.24% 3.50% to 4.75% 3.41 % 3.31 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2031 2028-2059 2025 2052 Number of series 20 16 16 3 1 1 (1) Includes $270 million (principal balance) of ABS issued by a CAFL bridge securitization trust sponsored by Redwood and accounted for at amortized cost at March 31, 2022 and December 31, 2021. (2) Includes $131 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at March 31, 2022 and December 31, 2021, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and HEI securitization entities are subject to early redemption and interest rate step-ups as described below.
Accrued Interest Payable on Asset-Backed Securities Issued	The following table summarizes the accrued interest payable on ABS issued at March 31, 2022 and December 31, 2021. Interest due on consolidated ABS issued is payable monthly. Table 14.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) March 31, 2022 December 31, 2021 Legacy Sequoia $ 107 $ 99 Sequoia 9,598 8,452 CAFL 10,342 11,030 Freddie Mac SLST (1) 4,405 4,630 Freddie Mac K-Series 1,232 1,190 Total Accrued Interest Payable on ABS Issued $ 25,684 $ 25,401 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and December 31, 2021. Table 15.1 – Long-Term Debt March 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 $ 133,034 $ (208) $ 132,826 N/A 4.21 % 9/2024 CAFL Facility B 102,351 (278) 102,073 N/A 4.21 % 2/2025 Facility G 81,995 (313) 81,682 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility H 430,026 (755) 429,271 $ 600,000 L + 2.50% N/A Recourse BPL Financing Facility F 301,200 (205) 300,995 450,000 SOFR + 2.25% 9/2023 Facility I 263,836 — 263,836 450,000 SOFR + 3.24% 6/2023 Total Long-Term Debt Facilities 1,312,442 (1,759) 1,310,683 Convertible notes 4.75% convertible senior notes 198,629 (1,571) 197,058 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (1,879) 148,321 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,182) 168,910 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (768) 138,732 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,972,863 $ (9,159) $ 1,963,704 December 31, 2021 (Dollars in Thousands) Borrowings Unamortized Deferred Issuance Costs / Discount Net Carrying Value Limit Weighted Average Interest Rate (1) Final Maturity Facilities Recourse Subordinate Securities Financing Facility A $ 144,385 $ (313) $ 144,072 N/A 4.21 % 9/2024 CAFL Facility B 102,351 (353) 101,998 N/A 4.21 % 2/2025 Facility G 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility H 307,215 (507) 306,708 $ 400,000 L + 2.75% N/A Recourse BPL Financing Facility F 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility I 110,148 — 110,148 450,000 L + 3.35% 6/2023 Total Long-Term Debt Facilities 990,155 (1,672) 988,483 Convertible notes 4.75% convertible senior notes 198,629 (1,836) 196,793 N/A 4.75 % 8/2023 5.625% convertible senior notes 150,200 (2,072) 148,128 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (3,384) 168,708 N/A 5.75 % 10/2025 Trust preferred securities and subordinated notes 139,500 (779) 138,721 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,650,576 $ (9,743) $ 1,640,833 (1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) or 1-month SOFR plus an applicable spread. The following table summarizes the accrued interest payable on long-term debt at March 31, 2022 and December 31, 2021. Table 15.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Long-term debt facilities $ 1,589 $ 815 Convertible notes 4.75% convertible senior notes 1,206 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,948 2,474 Trust preferred securities and subordinated notes 607 581 Total Accrued Interest Payable on Long-Term Debt $ 10,134 $ 11,330
Schedule of Financial Instruments Owned and Pledged as Collateral	The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at March 31, 2022 and December 31, 2021. Table 15.2 – Collateral for Long-Term Debt (In Thousands) March 31, 2022 December 31, 2021 Collateral Type Bridge loans $ 815,580 $ 554,597 Single-family rental loans 376,502 244,703 Real estate securities Sequoia securitizations (1) 226,974 247,227 CAFL securitizations (1) 264,774 260,405 Total Collateral for Long-Term Debt $ 1,683,830 $ 1,306,932

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments by Year	The following table presents our future lease commitments at March 31, 2022. Table 16.1 – Future Lease Commitments by Year (In Thousands) March 31, 2022 2022 (9 months) $ 3,228 2023 4,428 2024 4,338 2025 3,475 2026 3,420 2027 and thereafter 4,553 Total Lease Commitments 23,442 Less: Imputed interest (3,224) Operating Lease Liabilities $ 20,218

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (In Thousands) Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Available-for-Sale Securities Interest Rate Agreements Accounted for as Cash Flow Hedges Balance at beginning of period $ 67,503 $ (76,430) $ 76,336 $ (80,557) Other comprehensive (loss) income (17,873) — 10,986 — Amounts reclassified from other (692) 1,018 (2,795) 1,018 Net current-period other comprehensive (loss) income (18,565) 1,018 8,191 1,018 Balance at End of Period $ 48,938 $ (75,412) $ 84,527 $ (79,539)
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, 2022 and 2021. Table 17.2 – 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 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 705 $ (374) Gain on sale of AFS securities Realized gains, net (1,397) (2,421) $ (692) $ (2,795) 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, 2022 and 2021. Table 17.3 – Basic and Diluted Earnings per Common Share Three Months Ended March 31, (In Thousands, except Share Data) 2022 2021 Basic Earnings per Common Share: Net income attributable to Redwood $ 30,915 $ 97,257 Less: Dividends and undistributed earnings allocated to participating securities (1,209) (3,294) Net income allocated to common shareholders $ 29,706 $ 93,963 Basic weighted average common shares outstanding 119,884,172 112,276,842 Basic Earnings per Common Share $ 0.25 $ 0.84 Diluted Earnings per Common Share: Net income attributable to Redwood $ 30,915 $ 97,257 Less: Dividends and undistributed earnings allocated to participating securities (1,348) (2,951) Add back: Interest expense on convertible notes for the period, net of tax 4,582 7,007 Net income allocated to common shareholders $ 34,149 $ 101,313 Weighted average common shares outstanding 119,884,172 112,276,842 Net effect of dilutive equity awards 290,831 195,568 Net effect of assumed convertible notes conversion to common shares 20,331,154 28,566,875 Diluted weighted average common shares outstanding 140,506,157 141,039,285 Diluted Earnings per Common Share $ 0.24 $ 0.72

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2022
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 $44 million at March 31, 2022, as shown in the following table. Table 18.1 – Activities of Equity Compensation Costs by Award Type Three Months Ended March 31, 2022 (In Thousands) Restricted Stock Awards Restricted Stock Units Deferred Stock Units Performance Stock Units Employee Stock Purchase Plan Total Unrecognized compensation cost at beginning of period $ 84 $ 3,589 $ 26,473 $ 12,237 $ — $ 42,383 Equity grants — 2,484 3,850 — 323 6,657 Performance-based valuation adjustment — — — — — — Equity grant forfeitures (5) (242) — — — (247) Equity compensation expense (66) (471) (2,949) (1,258) (81) (4,825) Unrecognized Compensation Cost at End of Period $ 13 $ 5,360 $ 27,374 $ 10,979 $ 242 $ 43,968

Mortgage Banking Activities, _2

Mortgage Banking Activities, Net (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021. Table 19.1 – Mortgage Banking Activities Three Months Ended March 31, (In Thousands) 2022 2021 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (68,822) $ (29,273) Trading securities (2) 2,786 721 Risk management derivatives (3) 73,354 88,964 Other income (expense), net (4) 617 1,023 Total residential mortgage banking activities, net 7,935 61,435 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) (25,193) 10,248 Risk management derivatives (3) 17,033 3,858 Bridge loans, at fair value 2,135 1,044 Other income, net (5) 14,405 6,022 Total business purpose mortgage banking activities, net 8,380 21,172 Mortgage Banking Activities, Net $ 16,315 $ 82,607 (1) For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchase expense, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income (Tables)

Other Income (Tables)	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
Schedule of other income	The following table presents the components of Other income recorded in our consolidated statements of income for the three months ended March 31, 2022 and 2021. Table 20.1 – Other Income Three Months Ended March 31, (In Thousands) 2022 2021 MSR income, net (1) $ 4,303 $ 697 Risk share income 460 882 Bridge loan fees 990 693 Other 230 1,571 Other Income, Net $ 5,983 $ 3,843 (1) Includes servicing fees and fair value changes for MSRs, net.

General and Administrative Ex_2

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021 are presented in the following table. Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended March 31, (In Thousands) 2022 2021 General and Administrative Expenses Fixed compensation expense $ 14,628 $ 11,805 Annual variable compensation expense 3,357 18,669 Long-term incentive award expense (1) 5,660 4,169 Acquisition-related equity compensation expense (2) — 1,212 Systems and consulting 3,184 2,977 Office costs 2,025 1,808 Accounting and legal 1,675 714 Corporate costs 864 691 Other 3,461 1,506 Total General and Administrative Expenses 34,854 43,551 Loan Acquisition Costs Commissions 2,614 1,263 Underwriting costs 1,372 1,685 Transfer and holding costs 479 611 Total Loan Acquisition Costs 4,465 3,559 Other Expenses Amortization of purchase-related intangible assets 3,534 3,873 Other 551 223 Total Other Expenses 4,085 4,096 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 43,404 $ 51,206 (1) For the three months ended March 31, 2022 and 2021, long-term incentive award expense includes $5 million and $3 million, respectively, of expense for awards settleable in shares of our common stock and $1 million and $1 million, respectively, of expense for awards settleable in cash. (2) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest in 2019. The grant date fair value of these restricted stock awards was $10 million, which was recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021. Table 22.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate March 31, 2022 March 31, 2021 Federal statutory rate 21.0 % 21.0 % State statutory rate, net of Federal tax effect 8.6 % 8.6 % Differences in taxable (loss) income from GAAP income (20.4) % (12.5) % Change in valuation allowance 2.1 % (3.7) % Dividends paid deduction (19.9) % (2.8) % Effective Tax Rate (8.6) % 10.6 %

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Business Segment Financial Information	The following tables present financial information by segment for the three months ended March 31, 2022 and 2021. Table 23.1 – Business Segment Financial Information 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 6,031 2,273 53,991 (9,193) 53,102 Non-interest income 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, net 7,935 8,955 2,457 (588) 18,759 General and administrative expenses (6,101) (10,472) (3,133) (15,148) (34,854) 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 (expense) income, net $ 104 $ (3,890) $ 7,300 $ (2,033) $ 1,481 Three Months Ended March 31, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 7,579 $ 2,855 $ 116,509 $ 1,362 $ 128,305 Interest expense (4,747) (1,599) (85,945) (10,261) (102,552) Net interest income 2,832 1,256 30,564 (8,899) 25,753 Non-interest income Mortgage banking activities, net 61,435 21,172 — — 82,607 Investment fair value changes, net — — 45,761 (674) 45,087 Other income, net — 122 3,574 147 3,843 Realized gains, net — — 2,716 — 2,716 Total non-interest income (loss), net 61,435 21,294 52,051 (527) 134,253 General and administrative expenses (12,689) (10,194) (3,164) (17,504) (43,551) Loan acquisition costs (1,404) (1,492) (659) (4) (3,559) Other expenses (6) (3,777) (330) 17 (4,096) Provision for income taxes (9,486) (1,321) (736) — (11,543) Segment Contribution $ 40,682 $ 5,766 $ 77,726 $ (26,917) Net Income $ 97,257 Non-cash amortization income (expense), net $ (3) $ (4,098) $ (234) $ (1,895) $ (6,230)
Components of Corporate and Other	The following table presents the components of Corporate/Other for the three months ended March 31, 2022 and 2021. Table 23.2 – Components of Corporate/Other Three Months Ended March 31, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,012 $ 8 $ 1,020 $ 1,348 $ 14 $ 1,362 Interest expense (701) (9,512) (10,213) (875) (9,386) (10,261) Net interest income 311 (9,504) (9,193) 473 (9,372) (8,899) Non-interest income Investment fair value changes, net (714) — (714) (699) 25 (674) Other income — 126 126 — 147 147 Total non-interest income, net (714) 126 (588) (699) 172 (527) General and administrative expenses — (15,148) (15,148) — (17,504) (17,504) Loan acquisition costs — — — — (4) (4) Other expenses — — — — 17 17 Total $ (403) $ (24,526) $ (24,929) $ (226) $ (26,691) $ (26,917) (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, 2022 and December 31, 2021. Table 23.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Lending Mortgage Banking Investment Portfolio Corporate/ Total March 31, 2022 Residential loans $ 1,101,006 $ — $ 5,893,918 $ 222,213 $ 7,217,137 Business purpose loans — 496,280 4,258,498 — 4,754,778 Multifamily loans — — 451,804 — 451,804 Real estate securities 7,714 — 351,168 — 358,882 Other investments — — 595,056 40,525 635,581 Intangible assets — 38,027 — — 38,027 Total assets 1,234,502 607,991 11,546,776 864,023 14,253,292 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Other investments — — 606,267 35,702 641,969 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Organization (Details)

Organization (Details)	3 Months Ended
	Mar. 31, 2022segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)partnership	Mar. 31, 2021USD ($)	Dec. 31, 2019USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
VIE, ownership interest rate (as a percent)	80.00%
Amortization of purchase-related intangible assets	$ 3,534	$ 3,873
5 Arches
Variable Interest Entity [Line Items]
Intangible assets			$ 25,000
CAFL
Variable Interest Entity [Line Items]
Intangible assets			$ 57,000

Basis of Presentation - Intangi

Basis of Presentation - Intangible Assets – Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 38,027
Carrying value	38,027
5 Arches LLC and CoreVest
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	38,027	$ 81,300
Accumulated amortization	(43,273)
Carrying value	$ 38,027	81,300
Weighted Average Amortization Period (in years)	6 years
5 Arches LLC and CoreVest | Borrower network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 29,391	45,300
Accumulated amortization	(15,909)
Carrying value	$ 29,391	45,300
Weighted Average Amortization Period (in years)	7 years
5 Arches LLC and CoreVest | Broker network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 6,938	18,100
Accumulated amortization	(11,162)
Carrying value	$ 6,938	18,100
Weighted Average Amortization Period (in years)	5 years
5 Arches LLC and CoreVest | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 1,192	9,500
Accumulated amortization	(8,308)
Carrying value	$ 1,192	9,500
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Tradenames
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 506	4,000
Accumulated amortization	(3,494)
Carrying value	$ 506	4,000
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 0	1,800
Accumulated amortization	(1,800)
Carrying value	$ 0	1,800
Weighted Average Amortization Period (in years)	2 years
5 Arches LLC and CoreVest | Loan administration fees on existing loan assets
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 0	2,600
Accumulated amortization	(2,600)
Carrying value	$ 0	$ 2,600
Weighted Average Amortization Period (in years)	1 year

Basis of Presentation - Intan_2

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) $ in Thousands	Mar. 31, 2022USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2022 (9 months)	$ 9,266
2023	10,091
2024	7,075
2025	6,471
2026	5,124
Total Future Intangible Asset Amortization	$ 38,027

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Borrowings	$ 1,972,863,000	$ 1,650,576,000
Notional Amount	9,842,443,000	6,861,921,000
Interest rate contract
Debt Instrument [Line Items]
Notional Amount	381,000,000	$ 2,100,000,000
Repo or Warehouse Debt
Debt Instrument [Line Items]
Borrowings	966,000,000
Bridge Loan
Debt Instrument [Line Items]
Borrowings	858,000,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Borrowings	$ 140,000,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 112,060	$ 26,467
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(80,260)	(3,317)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(491,824)	(575,534)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(491,824)	(575,534)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		479,934	574,629
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		9,628	895
Net Amount		(2,262)	(10)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		11,412	18,929
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		11,412	18,929
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(650)	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	(16,046)
Net Amount		10,762	1,632
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(650)	(1,251)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(650)	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		650	1,251
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		0	0
TBAs
Assets
Gross Amounts of Recognized Assets (Liabilities)		95,631	2,880
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		95,631	2,880
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(52,993)	(633)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(41,706)	(704)
Net Amount		932	1,543
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(64,883)	(658)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(64,883)	(658)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		52,993	633
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		9,628	15
Net Amount		(2,262)	(10)
Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		2,907	25
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		2,907	25
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(236)	(25)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(151)	0
Net Amount		2,520	0
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(236)	(905)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(236)	(905)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		236	25
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	880
Net Amount		0	0
Interest Rate Agreement, TBAs, and Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		109,950	21,834
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		109,950	21,834
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(53,879)	(1,909)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(41,857)	(16,750)
Net Amount		14,214	3,175
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(426,055)	(572,720)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(426,055)	(572,720)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		426,055	572,720
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		0	0
Net Amount		$ 0	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)entitypartnership	Dec. 31, 2021USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
VIE, ownership interest rate (as a percent)	80.00%
Servicing asset, fair value	$ 265,949	$ 310,953
Loans for sale at fair value that were acquired	$ 246,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred (in entities) | entity	46
Number of entities called | entity	3
Unpaid principal balance of loans purchased	$ 102,000
Gain related to called security	$ 300
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
VIE, ownership interest rate (as a percent)	80.00%
Servicing asset, fair value	$ 99,000

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entities Accounted for as Collateralized Financing Entities (Details) $ in Thousands		Mar. 31, 2022USD ($)investment	Dec. 31, 2021USD ($)investment
Variable Interest Entity [Line Items]
Other investments	[1]	$ 635,581	$ 641,969
Cash and cash equivalents	[1]	409,272	450,485
Restricted cash	[1]	73,549	80,999
Accrued interest receivable		48,717	47,515
Other assets	[1]	202,202	231,117
Total Assets	[1]	14,253,292	14,706,944
Short-term debt	[1]	1,647,246	2,177,362
Accrued interest payable		38,647	39,297
Accrued expenses and other liabilities	[1]	244,450	245,788
Asset-backed securities issued	[1]	8,872,366	9,253,557
Total liabilities	[1]	12,808,026	13,320,857
CAFL
Variable Interest Entity [Line Items]
Fair value of securities owned		306,000	302,000
Carrying value of securities owned		37,000	38,000
Freddie Mac SLST
Variable Interest Entity [Line Items]
Fair value of securities owned		437,000	445,000
Carrying value of securities owned		129,000	143,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets		10,250,802	10,661,081
Total liabilities		9,202,156	9,619,347
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		489,529	544,307
Cash and cash equivalents		9,684	6,481
Restricted cash		37,668	46,086
Accrued interest receivable		34,877	35,401
Other assets		26,263	41,826
Total Assets		10,250,802	10,661,081
Short-term debt		253,393	294,447
Accrued interest payable		25,349	25,018
Accrued expenses and other liabilities		51,048	46,325
Asset-backed securities issued		8,872,366	9,253,557
Total liabilities		9,202,156	9,619,347
Value of our investments in VIEs(1)		$ 1,040,987	$ 1,033,913
Number of VIEs | investment		61	60
Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 5,870,067	$ 5,747,150
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	4,248,889	4,432,680
Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		3,330,910	3,766,316
Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		451,804	473,514
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		148	148
Accrued interest receivable		194	210
Other assets		0	61
Total Assets		222,555	230,874
Short-term debt		0	0
Accrued interest payable		106	99
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		220,301	227,881
Total liabilities		220,407	227,980
Value of our investments in VIEs(1)		$ 1,912	$ 2,634
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		$ 222,213	$ 230,455
Legacy Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Legacy Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		4	5
Accrued interest receivable		11,945	10,885
Other assets		0	0
Total Assets		3,884,265	3,639,355
Short-term debt		0	0
Accrued interest payable		9,598	8,452
Accrued expenses and other liabilities		4	5
Asset-backed securities issued		3,627,920	3,383,048
Total liabilities		3,637,522	3,391,505
Value of our investments in VIEs(1)		$ 244,396	$ 245,417
Number of VIEs | investment		17	16
Sequoia | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 3,872,316	$ 3,628,465
Sequoia | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
CAFL | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		8,260	15,221
Accrued interest receivable		14,763	15,737
Other assets		16,229	32,510
Total Assets		3,370,162	3,829,784
Short-term debt		0	0
Accrued interest payable		10,342	11,030
Accrued expenses and other liabilities		1,386	1,171
Asset-backed securities issued		3,012,841	3,474,898
Total liabilities		3,024,569	3,487,099
Value of our investments in VIEs(1)		$ 342,343	$ 339,419
Number of VIEs | investment		16	16
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		3,330,910	3,766,316
CAFL | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		5,584	5,792
Other assets		2,421	2,028
Total Assets		1,783,543	1,896,050
Short-term debt		0	0
Accrued interest payable		3,888	4,055
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		1,470,043	1,588,463
Total liabilities		1,473,931	1,592,518
Value of our investments in VIEs(1)		$ 307,916	$ 301,795
Number of VIEs | investment		3	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		$ 1,775,538	$ 1,888,230
Freddie Mac SLST | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		1,362	1,315
Other assets		0	0
Total Assets		453,166	474,829
Short-term debt		0	0
Accrued interest payable		1,232	1,190
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		419,883	441,857
Total liabilities		421,115	443,047
Value of our investments in VIEs(1)		$ 31,921	$ 31,657
Number of VIEs | investment		1	1
Freddie Mac K-Series | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Freddie Mac K-Series | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		451,804	473,514
Servicing Investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		336,282	384,754
Cash and cash equivalents		9,684	6,481
Restricted cash		24,170	25,420
Accrued interest receivable		1,029	1,462
Other assets		7,563	7,177
Total Assets		378,728	425,294
Short-term debt		253,393	294,447
Accrued interest payable		183	192
Accrued expenses and other liabilities		26,406	28,115
Asset-backed securities issued		0	0
Total liabilities		279,982	322,754
Value of our investments in VIEs(1)		$ 98,746	$ 102,540
Number of VIEs | investment		3	3
Servicing Investment | Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
Servicing Investment | Business purpose loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Servicing Investment | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
HEI | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		153,247	159,553
Cash and cash equivalents		0	0
Restricted cash		5,086	5,292
Accrued interest receivable		0	0
Other assets		50	50
Total Assets		158,383	164,895
Short-term debt		0	0
Accrued interest payable		0	0
Accrued expenses and other liabilities		23,252	17,034
Asset-backed securities issued		121,378	137,410
Total liabilities		144,630	154,444
Value of our investments in VIEs(1)		$ 13,753	$ 10,451
Number of VIEs | investment		1	1
Fair value of securities owned		$ 14,000
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 | Multifamily loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Principles of Consolidation - I

Principles of Consolidation - Income (Loss) from Consolidated VIEs Accounted for as Collateralized Financing Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Variable Interest Entity [Line Items]
Interest income	$ 189,400	$ 128,305
Interest expense	(136,298)	(102,552)
Net Interest Income	53,102	25,753
Investment fair value changes, net	(6,120)	45,087
Total non-interest income, net	18,759	134,253
General and administrative expenses	(34,854)	(43,551)
Net Income	30,915	97,257
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	140,316	94,871
Interest expense	(107,470)	(75,005)
Net Interest Income	32,846	19,866
Investment fair value changes, net	1,371	15,705
Other income	90
Total non-interest income, net	1,461	15,705
General and administrative expenses	(31)	(38)
Other expenses	(551)	330
Net Income	33,725	35,203
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	1,012	1,348
Interest expense	(701)	(875)
Net Interest Income	311	473
Investment fair value changes, net	(714)	(699)
Other income	0
Total non-interest income, net	(714)	(699)
General and administrative expenses	0	0
Other expenses	0	0
Net Income	(403)	(226)
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	32,098	15,483
Interest expense	(28,171)	(12,106)
Net Interest Income	3,927	3,377
Investment fair value changes, net	(3,822)	4,898
Other income	0
Total non-interest income, net	(3,822)	4,898
General and administrative expenses	0	0
Other expenses	0	0
Net Income	105	8,275
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	77,334	48,873
Interest expense	(58,480)	(39,011)
Net Interest Income	18,854	9,862
Investment fair value changes, net	2,664	(286)
Other income	90
Total non-interest income, net	2,754	(286)
General and administrative expenses	0	0
Other expenses	0	0
Net Income	21,608	9,576
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	17,200	20,159
Interest expense	(14,085)	(17,371)
Net Interest Income	3,115	2,788
Investment fair value changes, net	3,036	4,117
Other income	0
Total non-interest income, net	3,036	4,117
General and administrative expenses	0	0
Other expenses	0	0
Net Income	6,151	6,905
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,753	4,786
Interest expense	(4,371)	(4,356)
Net Interest Income	382	430
Investment fair value changes, net	264	8,921
Other income	0
Total non-interest income, net	264	8,921
General and administrative expenses	0	0
Other expenses	0	0
Net Income	646	9,351
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	7,919	4,222
Interest expense	(1,662)	(1,286)
Net Interest Income	6,257	2,936
Investment fair value changes, net	(3,468)	(1,246)
Other income	0
Total non-interest income, net	(3,468)	(1,246)
General and administrative expenses	(31)	(38)
Other expenses	(551)	330
Net Income	2,207	1,322
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	3,411	0
Other income	0
Total non-interest income, net	3,411	0
General and administrative expenses	0	0
Other expenses	0	0
Net Income	$ 3,411	$ 0

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 0	$ 875,879
Trading securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	0	6,549
AFS securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 0	$ 1,078

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, 2022	Mar. 31, 2021
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 0	$ 904,390
MSR fees received	864	1,607
Funding of compensating interest, net	(16)	(100)
Cash flows received on retained securities	$ 14,126	$ 8,629

Principles of Consolidation -_3

Principles of Consolidation - Assumptions Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary	3 Months Ended
	Mar. 31, 2021
Senior IO Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	12.00%
Discount rates	15.00%
Credit loss assumptions	0.22%
Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	12.00%
Discount rates	6.00%
Credit loss assumptions	0.22%

Principles of Consolidation -_4

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	$ 185,198	$ 206,792
Servicing asset, fair value	265,949	310,953
Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Maximum loss exposure	142,141	152,206
Assets transferred:
Principal balance of loans outstanding	4,491,763	4,959,234
Principal balance of loans 30+ days delinquent	27,286	30,594
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	24,246	18,214
Subordinate securities, classified as AFS | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	108,768	127,542
Mortgage servicing rights
On-balance sheet assets, at fair value:
Servicing asset, fair value	19,739	12,438
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Servicing asset, fair value	$ 9,127	$ 6,450

Principles of Consolidation - K

Principles of Consolidation - Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
MSRs
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 9,127	$ 6,450
Expected life (in years)	5 years	3 years
Prepayment speed assumption (annual CPR) (as a percent)	16.00%	29.00%
Decrease in fair value from:
10% adverse change	$ 396	$ 447
25% adverse change	$ 912	$ 1,020
Discount rate assumption	12.00%	12.00%
Decrease in fair value from:
100 basis point increase	$ 282	$ 152
200 basis point increase	547	297
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	$ 24,246	$ 18,214
Expected life (in years)	6 years	4 years
Prepayment speed assumption (annual CPR) (as a percent)	14.00%	23.00%
Decrease in fair value from:
10% adverse change	$ 986	$ 1,130
25% adverse change	$ 2,318	$ 2,596
Discount rate assumption	16.00%	16.00%
Decrease in fair value from:
100 basis point increase	$ 656	$ 426
200 basis point increase	$ 1,273	$ 829
Credit loss assumption	0.03%	0.35%
Decrease in fair value from:
10% higher losses	$ 0	$ 0
25% higher losses	0	0
Subordinate Securities
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 108,768	$ 127,542
Expected life (in years)	11 years	5 years
Prepayment speed assumption (annual CPR) (as a percent)	22.00%	32.00%
Decrease in fair value from:
10% adverse change	$ 1,228	$ 531
25% adverse change	$ 3,068	$ 1,440
Discount rate assumption	6.00%	5.00%
Decrease in fair value from:
100 basis point increase	$ 9,022	$ 4,801
200 basis point increase	$ 17,064	$ 9,139
Credit loss assumption	0.03%	0.35%
Decrease in fair value from:
10% higher losses	$ 45	$ 1,528
25% higher losses	$ 113	$ 3,819
Minimum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Minimum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Minimum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10.00%	10.00%
Impact of increase in discount rate assumption	1.00%	1.00%
Impact of adverse change in expected credit losses	10.00%	10.00%
Maximum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
Impact of adverse change in expected credit losses	25.00%	25.00%
Maximum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
Impact of adverse change in expected credit losses	25.00%	25.00%
Maximum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25.00%	25.00%
Impact of increase in discount rate assumption	2.00%	2.00%
Impact of adverse change in expected credit losses	25.00%	25.00%

Principles of Consolidation -_5

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 358,882	$ 377,411
Other assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		235,447	242,055
Other assets | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		9,960	3,572
Other assets | Subordinate | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		215,908	228,083
Other assets | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		225,868	231,655
Other assets | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 9,579	$ 10,400
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Assets
Real estate securities		$ 173,684	$ 170,619
MSRs		265,949	310,953
Derivative assets	[1]	112,060	26,467
Liabilities
Derivative liabilities	[1]	80,260	3,317
ABS issued, net, Fair value		8,475,868	8,843,147
Residential Loans
Assets
MSRs		302,837	350,923
Carrying Value
Assets
Real estate securities		358,882	377,411
Other financial instruments		11,824	12,663
Cash and cash equivalents		409,272	450,485
Restricted cash		73,549	80,999
Derivative assets		112,060	26,467
Margin receivable		17,165	7,269
Liabilities
Margin payable		41,966	24,368
Guarantee obligation		7,046	7,459
Derivative liabilities		80,260	3,317
ABS issued, net, Fair value		8,475,868	8,843,147
ABS issued, net, Amortized cost		396,498	410,410
Other long-term debt, net		1,310,683	988,483
Convertible notes, net		514,289	513,629
Trust preferred securities and subordinated notes, net		138,732	138,721
Carrying Value | Servicer Advance Investments
Assets
MSRs		302,837	350,923
Carrying Value | MSRs
Assets
MSRs		19,739	12,438
Carrying Value | Excess MSRs
Assets
REO		43,023	44,231
Carrying Value | REO
Assets
REO		27,179	36,126
Carrying Value | Short-term debt
Liabilities
Short-term debt		1,647,246	2,177,362
Carrying Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		1,347,036	1,845,248
Carrying Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		5,870,068	5,747,150
Carrying Value | Residential Loans | Business purpose loans, held-for-sale
Assets
Loans, held-for-sale		505,889	358,309
Carrying Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		4,248,889	4,432,680
Carrying Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		451,804	473,514
Fair Value
Assets
Real estate securities		358,882	377,411
Other financial instruments		11,824	12,663
Cash and cash equivalents		409,272	450,485
Restricted cash		73,549	80,999
Derivative assets		112,060	26,467
Margin receivable		17,165	7,269
Liabilities
Margin payable		41,966	24,368
Guarantee obligation		6,579	7,133
Derivative liabilities		80,260	3,317
ABS issued, net, Fair value		8,475,868	8,843,147
ABS issued, net, Amortized cost		379,930	410,471
Other long-term debt, net		1,307,867	989,570
Convertible notes, net		518,738	537,300
Trust preferred securities and subordinated notes, net		104,625	97,650
Fair Value | Servicer Advance Investments
Assets
MSRs		302,837	350,923
Fair Value | MSRs
Assets
MSRs		19,739	12,438
Fair Value | Excess MSRs
Assets
REO		43,023	44,231
Fair Value | REO
Assets
REO		30,787	39,272
Fair Value | Short-term debt
Liabilities
Short-term debt		1,647,246	2,177,362
Fair Value | Residential Loans | Residential loans, held-for-sale at fair value
Assets
Loans, held-for-sale		1,347,036	1,845,248
Fair Value | Residential Loans | Residential loans, held-for-investment
Assets
Loans receivable, fair value		5,870,068	5,747,150
Fair Value | Residential Loans | Business purpose loans, held-for-sale
Assets
Loans, held-for-sale		505,889	358,309
Fair Value | Residential Loans | Business purpose loans, held-for-investment
Assets
Loans receivable, fair value		4,248,889	4,432,680
Fair Value | Residential Loans | Multifamily loans
Assets
Loans receivable, fair value		451,804	473,514
HEIs at Redwood | Carrying Value
Assets
Shared home appreciation options		227,133	192,740
Liabilities
HEI securitization non-controlling interest		23,253	17,035
HEIs at Redwood | Fair Value
Assets
Shared home appreciation options		227,133	192,740
Liabilities
HEI securitization non-controlling interest		$ 23,253	$ 17,035
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 5,000	$ 22,000
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	2,120,000	3,100,000
Business purpose loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	920,000	$ 386,000
Acquisitions	64,875
HEIs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	40,000
MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	5,793
Excess MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	$ 5,000

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, 2022	Dec. 31, 2021
Assets
Real estate securities		$ 173,684	$ 170,619
MSRs		265,949	310,953
Other investments	[1]	635,581	641,969
Derivative assets	[1]	112,060	26,467
Liabilities
Derivative liabilities	[1]	80,260	3,317
ABS issued		8,475,868	8,843,147
Fair Value, Measurements, Recurring
Assets
Business purpose loans		4,754,778	4,790,989
Multifamily loans		451,804	473,514
Real estate securities		358,882	377,411
Servicer advance investments		302,837	350,923
MSRs		19,739	12,438
Excess MSRs		43,023	44,231
HEIs		227,133	192,740
Other investments		11,824	17,574
Derivative assets		112,060	26,467
Liabilities
HEI securitization non-controlling interest		23,253	17,035
Derivative liabilities		80,260	3,317
ABS issued		8,475,868	8,843,147
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		7,217,104	7,592,398
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose loans		0	0
Multifamily loans		0	0
Real estate securities		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		98,538	2,906
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		65,119	1,563
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 1 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 2
Assets
Business purpose loans		0	0
Multifamily loans		0	0
Real estate securities		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		11,412	18,928
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		650	1,251
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Business purpose loans		4,754,778	4,790,989
Multifamily loans		451,804	473,514
Real estate securities		358,882	377,411
Servicer advance investments		302,837	350,923
MSRs		19,739	12,438
Excess MSRs		43,023	44,231
HEIs		227,133	192,740
Other investments		11,824	17,574
Derivative assets		2,110	4,633
Liabilities
HEI securitization non-controlling interest		23,253	17,035
Derivative liabilities		14,491	503
ABS issued		8,475,868	8,843,147
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 7,217,104	$ 7,592,398
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Point Noncontrolling Interest
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	$ 17,035
Acquisitions	0
Principal paydowns	0
Gains (losses) in net income, net	6,218
Other settlements, net	0
Ending balance - March 31, 2022	23,253
ABS Issued
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	8,843,147
Acquisitions	680,749
Principal paydowns	(520,949)
Gains (losses) in net income, net	(527,079)
Other settlements, net	0
Ending balance - March 31, 2022	8,475,868
Residential Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	7,592,398
Acquisitions	2,110,494
Originations	0
Sales	(1,849,874)
Principal paydowns	(297,480)
Gains (losses) in net income, net	(337,595)
Unrealized losses in OCI, net	0
Other settlements, net	(839)
Ending balance - March 31, 2022	7,217,104
Business purpose loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	4,790,989
Acquisitions	64,875
Originations	855,227
Sales	(331,750)
Principal paydowns	(407,991)
Gains (losses) in net income, net	(216,300)
Unrealized losses in OCI, net	0
Other settlements, net	(272)
Ending balance - March 31, 2022	4,754,778
Multifamily loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	473,514
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(2,029)
Gains (losses) in net income, net	(19,681)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2022	451,804
Trading Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	170,619
Acquisitions	5,006
Originations	0
Sales	0
Principal paydowns	(485)
Gains (losses) in net income, net	(1,456)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2022	173,684
AFS Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	206,792
Acquisitions	10,000
Originations	0
Sales	0
Principal paydowns	(22,564)
Gains (losses) in net income, net	10,383
Unrealized losses in OCI, net	(19,413)
Other settlements, net	0
Ending balance - March 31, 2022	185,198
Servicer Advance Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	350,923
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	(45,005)
Gains (losses) in net income, net	(3,081)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2022	302,837
Excess MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	44,231
Acquisitions	0
Originations	0
Sales	0
Principal paydowns	0
Gains (losses) in net income, net	(1,208)
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2022	43,023
HEIs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	192,740
Acquisitions	40,141
Originations	0
Sales	0
Principal paydowns	(12,671)
Gains (losses) in net income, net	6,923
Unrealized losses in OCI, net	0
Other settlements, net	0
Ending balance - March 31, 2022	227,133
MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	25,101
Acquisitions	5,793
Originations	0
Sales	(1,762)
Principal paydowns	(30)
Gains (losses) in net income, net	3,020
Unrealized losses in OCI, net	0
Other settlements, net	(559)
Ending balance - March 31, 2022	31,563
Derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021	4,130
Acquisitions	0
Principal paydowns	0
Gains (losses) in net income, net	(42,379)
Other settlements, net	25,868
Ending balance - March 31, 2022	$ (12,381)

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, 2022	Mar. 31, 2021
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	$ (6,218)	$ 0
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	(14,442)	(35,661)
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	9,628	0
Held-for-investment at fair value | Residential loans at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(35,397)	(9,978)
Held-for-investment at fair value | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(4,981)	4,201
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	2,940	4,088
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	(14,647)	5,104
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	264	8,921
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	4,048	370
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	(1,401)	490
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	(3,081)	(160)
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	3,526	756
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	(1,208)	(1,952)
HEIs at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	1,185	5,315
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	$ 2,050	$ 1,053

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, 2022USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
REO	$ 646
Gain (Loss) on assets measured at fair value on a non-recurring basis	0
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	$ 646

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ 4,303	$ 697
Total Market Valuation Gains (Losses), Net	(1,859)	119,783
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,293	75,562
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	(27,199)	23,112
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	(41,623)	(52,385)
Mortgage Banking Activities, Net | Single-family rental loans held-for-sale, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(24,468)	10,248
Mortgage Banking Activities, Net | Single-family rental loan interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(725)	0
Mortgage Banking Activities, Net | Bridge loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	2,135	1,044
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	2,786	721
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	90,387	92,822
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(6,120)	45,087
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	(4,242)	20,628
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	1,973	0
Investment Fair Value Changes, Net | Residential loans held-for-sale, at fair value (called Sequoia loans)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(4,252)	317
Investment Fair Value Changes, Net | Bridge loans held-for-investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(2,143)	3,304
Investment Fair Value Changes, Net | Servicer Advance Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(3,081)	(160)
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	(1,208)	(1,953)
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	(714)	(699)
Investment Fair Value Changes, Net | Sequoia
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(3,822)	4,898
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	3,036	4,117
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	264	8,921
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	4,048	(286)
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	3,411	0
Investment Fair Value Changes, Net | HEIs at Redwood
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	1,192	5,315
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	123	310
Investment Fair Value Changes, Net | Credit (losses) recoveries on AFS securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(705)	375
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	2,968	(866)
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ 2,968	$ (866)

Fair Value of Financial Inst_10

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)$ / loan	Dec. 31, 2021USD ($)
Assets
ABS issued, net, Fair value | $	$ 8,475,868	$ 8,843,147
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | HEI
Liabilities
Fair value of securities owned | $	14,000
ABS Issued
Liabilities
ABS issued | $	$ 3,848,221
ABS Issued | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.07
ABS Issued | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.45
ABS Issued | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.25
ABS Issued | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0
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	0.05
ABS Issued | Default rate | Minimum
Liabilities
ABS issued, measurement input	0
ABS Issued | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.11
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	0.32
CAFL
Liabilities
ABS issued | $	$ 2,745,104
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.03
CAFL | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.02
CAFL | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.12
CAFL | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.05
CAFL | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.05
CAFL | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.20
CAFL | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
CAFL | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.30
CAFL | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.30
CAFL | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.30
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,341,282
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 SLST | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.03
Freddie Mac SLST | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.07
Freddie Mac SLST | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.04
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.09
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.10
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.09
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.35
Freddie Mac K-Series
Liabilities
ABS issued | $	$ 419,883
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	0.08
Freddie Mac K-Series | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.03
Consolidated Point Entities
Liabilities
ABS issued | $	$ 121,378
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 | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.07
Consolidated Point Entities | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.12
Consolidated Point Entities | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.07
Consolidated Point Entities | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.30
Consolidated Point Entities | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.30
Consolidated Point Entities | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.30
Consolidated Point Entities | Home price appreciation | Minimum
Liabilities
ABS issued, measurement input	0.03
Consolidated Point Entities | Home price appreciation | Maximum
Liabilities
ABS issued, measurement input	0.04
Consolidated Point Entities | Home price appreciation | Weighted Average
Liabilities
ABS issued, measurement input	0.03
Jumbo fixed-rate loans
Assets
ABS issued, net, Fair value | $	$ 772,917
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans held-for-sale, measurement input	0.20
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Minimum
Assets
Loans held-for-sale, measurement input	2.94
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Maximum
Assets
Loans held-for-sale, measurement input	2.94
Jumbo fixed-rate loans | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans held-for-sale, measurement input	2.94
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0225
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0225
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0225
Jumbo fixed-rate loans | CRT dollar price | Minimum
Assets
Loans held-for-sale, measurement input	100
Jumbo fixed-rate loans | CRT dollar price | Maximum
Assets
Loans held-for-sale, measurement input	100
Jumbo fixed-rate loans | CRT dollar price | Weighted Average
Assets
Loans held-for-sale, measurement input	100
Jumbo loans committed to sell
Assets
Loans receivable, fair value | $	$ 574,119
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Loans held-for-sale, measurement input	95.92
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Loans held-for-sale, measurement input	102.19
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Loans held-for-sale, measurement input	98.23
Legacy Sequoia
Assets
Loans receivable, fair value | $	$ 222,213
Sequoia
Assets
Loans receivable, fair value | $	3,872,316
Liabilities
Fair value of securities owned | $	246,000
Freddie Mac SLST
Assets
Loans receivable, fair value | $	1,775,539
Liabilities
Fair value of securities owned | $	437,000	445,000
Single-family rental loans
Assets
Loans receivable, fair value | $	$ 505,889
Single-family rental loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.25
Single-family rental loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.07
Single-family rental loans | Senior credit spread | Minimum
Assets
Loans receivable, measurement input	0.0140
Single-family rental loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0175
Single-family rental loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0155
Single-family rental loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0180
Single-family rental loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.1434
Single-family rental loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0377
Single-family rental loans | Senior credit support | Minimum
Assets
Loans receivable, measurement input	0.36
Single-family rental loans | Senior credit support | Maximum
Assets
Loans receivable, measurement input	0.37
Single-family rental loans | Senior credit support | Weighted Average
Assets
Loans receivable, measurement input	0.36
Single-family rental loans | IO discount rate | Minimum
Assets
Loans receivable, measurement input	0.08
Single-family rental loans | IO discount rate | Maximum
Assets
Loans receivable, measurement input	0.14
Single-family rental loans | IO discount rate | Weighted Average
Assets
Loans receivable, measurement input	0.09
Single-family rental loans | Non-securitizable loan dollar price | Minimum
Assets
Loans receivable, measurement input	78
Single-family rental loans | Non-securitizable loan dollar price | Maximum
Assets
Loans receivable, measurement input	100
Single-family rental loans | Non-securitizable loan dollar price | Weighted Average
Assets
Loans receivable, measurement input	98
CAFL
Assets
Loans receivable, fair value | $	$ 3,038,939
Liabilities
Fair value of securities owned | $	306,000	$ 302,000
Bridge loans
Assets
Loans receivable, fair value | $	$ 1,209,950
Bridge loans | Senior credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0180
Bridge loans | Senior credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.0180
Bridge loans | Senior credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0180
Bridge loans | Subordinate credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0225
Bridge loans | Subordinate credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.0790
Bridge loans | Subordinate credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0498
Bridge loans | Senior credit support | Minimum
Assets
Loans held-for-investment, measurement input	0.47
Bridge loans | Senior credit support | Maximum
Assets
Loans held-for-investment, measurement input	0.47
Bridge loans | Senior credit support | Weighted Average
Assets
Loans held-for-investment, measurement input	0.47
Bridge loans | IO discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.11
Bridge loans | IO discount rate | Maximum
Assets
Loans held-for-investment, measurement input	0.11
Bridge loans | IO discount rate | Weighted Average
Assets
Loans held-for-investment, measurement input	0.11
Bridge loans | Whole loan discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.04
Bridge loans | Whole loan discount rate | Maximum
Assets
Loans held-for-investment, measurement input	0.15
Bridge loans | Whole loan discount rate | Weighted Average
Assets
Loans held-for-investment, measurement input	0.07
Freddie Mac K-Series
Assets
Loans receivable, fair value | $	$ 451,804
Liabilities
Fair value of securities owned | $	32,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 358,882
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities	0.08
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities	0.55
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities	0.20
Trading and AFS securities | CRT dollar price | Minimum
Assets
Trading and AFS securities	88
Trading and AFS securities | CRT dollar price | Maximum
Assets
Trading and AFS securities	106
Trading and AFS securities | CRT dollar price | Weighted Average
Assets
Trading and AFS securities	95
Trading and AFS securities | Whole loan discount rate | Minimum
Assets
Trading and AFS securities	0
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	0.08
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	0.27
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities	0.04
Trading and AFS securities | Loss severity | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Loss severity | Maximum
Assets
Trading and AFS securities	0.50
Trading and AFS securities | Loss severity | Weighted Average
Assets
Trading and AFS securities	0.25
Servicer Advance Investments
Assets
Servicing asset | $	$ 302,837
Servicer Advance Investments | Minimum
Assets
Expected remaining life	5 years
Servicer Advance Investments | Maximum
Assets
Expected remaining life	5 years
Servicer Advance Investments | Weighted Average
Assets
Expected remaining life	5 years
Servicer Advance Investments | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.14
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	0.17
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	0.0017
Servicer Advance Investments | Mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0005
MSRs
Assets
Servicing asset | $	$ 19,739
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.10
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.29
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.16
MSRs | Whole loan discount rate | Minimum
Assets
Servicing asset, measurement input	0.12
MSRs | Whole loan discount rate | Maximum
Assets
Servicing asset, measurement input	0.12
MSRs | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.12
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing asset, measurement input	94
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing asset, measurement input	94
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing asset, measurement input	94
Excess MSRs
Assets
Servicing asset | $	$ 43,023
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.18
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.31
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.21
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 income | Minimum
Assets
Servicing asset, measurement input	0.0010
Excess MSRs | Excess mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0017
Excess MSRs | Excess mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0011
Home Appreciation Option
Assets
HEIs | $	$ 73,886
Home Appreciation Option | Prepayment rate (annual CPR) | Minimum
Assets
HEIs, Measurement input	0.01
Home Appreciation Option | Prepayment rate (annual CPR) | Maximum
Assets
HEIs, Measurement input	0.24
Home Appreciation Option | Prepayment rate (annual CPR) | Weighted Average
Assets
HEIs, Measurement input	0.17
Home Appreciation Option | Whole loan discount rate | Minimum
Assets
HEIs, Measurement input	0.10
Home Appreciation Option | Whole loan discount rate | Maximum
Assets
HEIs, Measurement input	0.10
Home Appreciation Option | Whole loan discount rate | Weighted Average
Assets
HEIs, Measurement input	0.10
Home Appreciation Option | Home price appreciation | Minimum
Assets
HEIs, Measurement input	0.03
Home Appreciation Option | Home price appreciation | Maximum
Assets
HEIs, Measurement input	0.04
Home Appreciation Option | Home price appreciation | Weighted Average
Assets
HEIs, Measurement input	0.03
HEIs held by Point HEI entity
Assets
HEIs | $	$ 153,247
REO
Assets
REO | $	$ 646
REO | Loss severity | Minimum
Assets
REO, measurement input	0.04
REO | Loss severity | Maximum
Assets
REO, measurement input	0.24
REO | Loss severity | Weighted Average
Assets
REO, measurement input	0.12
Residential loan purchase commitments, net
Assets
Loan purchase commitments, net | $	$ 12,322
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Minimum
Assets
Loans receivable, measurement input	2.94
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Maximum
Assets
Loans receivable, measurement input	2.94
Residential loan purchase commitments, net | Whole Loan Spread to TBA Price | Weighted Average
Assets
Loans receivable, measurement input	2.94
Residential loan purchase commitments, net | Whole loan spread to swap rate | Minimum
Assets
Loans receivable, measurement input	0.0225
Residential loan purchase commitments, net | Whole loan spread to swap rate | Maximum
Assets
Loans receivable, measurement input	0.0225
Residential loan purchase commitments, net | Whole loan spread to swap rate | Weighted Average
Assets
Loans receivable, measurement input	0.0225
Residential loan purchase commitments, net | Pull-through rate | Minimum
Assets
Loans receivable, measurement input	0.20
Residential loan purchase commitments, net | Pull-through rate | Maximum
Assets
Loans receivable, measurement input	1
Residential loan purchase commitments, net | Pull-through rate | Weighted Average
Assets
Loans receivable, measurement input	0.73
Residential loan purchase commitments, net | Committed sales price | Minimum
Assets
Loans receivable, measurement input	95.92
Residential loan purchase commitments, net | Committed sales price | Maximum
Assets
Loans receivable, measurement input	102.29
Residential loan purchase commitments, net | Committed sales price | Weighted Average
Assets
Loans receivable, measurement input	98.18
Single Family Rental Interest Rate Lock Commitments
Assets
Derivative asset, fair value | $	$ 59
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Minimum
Assets
Derivative asset, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Maximum
Assets
Derivative asset, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Prepayment rate (annual CPR) | Weighted Average
Assets
Derivative asset, measurement input	0.03
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Minimum
Assets
Derivative asset, measurement input	0.0140
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Maximum
Assets
Derivative asset, measurement input	0.0140
Single Family Rental Interest Rate Lock Commitments | Senior credit spread | Weighted Average
Assets
Derivative asset, measurement input	0.0140
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Minimum
Assets
Derivative asset, measurement input	0.0180
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Maximum
Assets
Derivative asset, measurement input	0.1434
Single Family Rental Interest Rate Lock Commitments | Subordinate credit spread | Weighted Average
Assets
Derivative asset, measurement input	0.0331
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Minimum
Assets
Derivative asset, measurement input	0.37
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Maximum
Assets
Derivative asset, measurement input	0.37
Single Family Rental Interest Rate Lock Commitments | Senior credit support | Weighted Average
Assets
Derivative asset, measurement input	0.37
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Minimum
Assets
Derivative asset, measurement input	0.08
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Maximum
Assets
Derivative asset, measurement input	0.08
Single Family Rental Interest Rate Lock Commitments | IO discount rate | Weighted Average
Assets
Derivative asset, measurement input	0.08
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Minimum
Assets
Derivative asset, measurement input	1
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Maximum
Assets
Derivative asset, measurement input	1
Single Family Rental Interest Rate Lock Commitments | Pull-through rate | Weighted Average
Assets
Derivative asset, measurement input	1

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	[1]	$ 1,347,069	$ 1,845,282
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		222,213	230,455
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		3,872,316	3,628,465
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		1,775,538	1,888,230
Residential Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		7,217,137	7,592,432
Residential Loans | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		222,213	230,455
Residential Loans | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,872,316	3,628,465
Residential Loans | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,775,539	1,888,230
Residential Loans | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,347,069	1,845,282
Residential Loans | Held-for-sale at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | Held-for-sale at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | Held-for-sale at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Residential Loans | 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		5,870,068	5,747,150
Residential Loans | Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		222,213	230,455
Residential Loans | Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,872,316	3,628,465
Residential Loans | Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,775,539	1,888,230
Residential Loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,347,069	1,845,282
Residential Loans | Redwood | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,347,069	1,845,282
Residential Loans | Redwood | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		$ 0	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details) $ in Millions	Mar. 31, 2022USD ($)
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights, at amortized cost	$ 1,290

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, 2022USD ($)loan	Dec. 31, 2021USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,611	2,196
Unpaid principal balance	$ 1,369,366	$ 1,813,865
Fair value of loans	1,347,069	1,845,282
Market value of loans pledged as collateral under short-term borrowing agreements	$ 1,334,272	$ 1,838,797
Weighted average coupon (as a percent)	3.63%	3.27%
Number of loans in foreclosure | loan	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	$ 616	$ 2,923
Number of loans with 90+ day delinquencies | loan	1	3
Fair value of loans with 90+ day delinquencies	$ 615	$ 2,304

Residential Loans - Quarterly A

Residential Loans - Quarterly Activity of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)securitization	Mar. 31, 2021USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 2,115,191	$ 3,096,048
Principal balance of loans sold	1,827,364	2,275,832
Principal balance of loans transferred to HFI	687,192	0
Net market valuation gains (losses) recorded	(31,451)	$ 23,429
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 102,000
Number of seasoned securities | securitization	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, 2022USD ($)loan	Dec. 31, 2021USD ($)loan
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,524	1,583
Unpaid principal balance	$ 248,814	$ 264,057
Fair value of loans	$ 222,213	$ 230,455
Weighted average coupon (as a percent)	1.88%	1.87%
Number of loans in foreclosure | loan	10	10
Unpaid principal balance of loans in foreclosure	$ 902	$ 2,188
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	4,870	4,300
Unpaid principal balance	$ 4,123,176	$ 3,605,469
Fair value of loans	$ 3,872,316	$ 3,628,465
Weighted average coupon (as a percent)	3.28%	3.39%
Number of loans in foreclosure | loan	2	2
Unpaid principal balance of loans in foreclosure	$ 1,484	$ 1,624
Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	11,654	11,986
Unpaid principal balance	$ 1,865,735	$ 1,932,241
Fair value of loans	$ 1,775,538	$ 1,888,230
Weighted average coupon (as a percent)	4.52%	4.51%
Number of loans in foreclosure | loan	256	241
Unpaid principal balance of loans in foreclosure	$ 43,467	$ 43,637
Financing Receivables, Equal to Greater than 90 Days Past Due | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	34	32
Fair value of loans with 90+ day delinquencies	$ 6,996	$ 7,482
Financing Receivables, Equal to Greater than 90 Days Past Due | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	16	18
Fair value of loans with 90+ day delinquencies	$ 12,879	$ 15,124
Financing Receivables, Equal to Greater than 90 Days Past Due | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	1,291	1,208
Fair value of loans with 90+ day delinquencies	$ 220,402	$ 212,961

Residential Loans - Quarterly_2

Residential Loans - Quarterly Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment	$ 1,098,459	$ 301,298
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)	(270,731)	(2,578)
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)	(43,768)	(3,566)
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)	6,325	7,613
Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment	$ 684,491	$ 0

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, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate amount, amount with original maturity of thirty years (as a percent)	2.00%
LIBOR
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	71.00%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	12.00%
Fixed Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	17.00%
Commitment To Fund Residential Bridge Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commitment to fund loan	$ 792,000
Residential Bridge, Held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	0		$ 0
Bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	917,979		666,364
Residential bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 917,979		666,364
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	$ 505,889		358,309
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,248,889		4,432,680
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,754,778		4,790,989
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	505,889		358,309
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	505,889		358,309
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	3,038,939		3,488,074
CAFL | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	3,038,939		3,488,074
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	291,971		278,242
CAFL | Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 291,971		$ 278,242

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)loan	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	$ 2,197,570	$ 3,150,432
Principal balance of loans sold to third parties	23,050	11,746
Transfers from loans held-for-sale to loans held-for-investment	1,098,459	301,298
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	442,727	253,098
Principal balance of loans acquired	61,892	0
Principal balance of loans sold to third parties	331,502	0
Transfers from loans held-for-sale to loans held-for-investment	0	169,404
Gain (loss) on investments	0	0
Fair value of loans	505,889		$ 358,309
Single-family rental loans, held-for-sale | Redwood | Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	(24,468)	10,248
Bridge loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	411,938	133,229
Principal balance of loans acquired	2,983	0
Principal balance of loans sold to third parties	0	8,877
Gain (loss) on investments	(759)	3,304
Fair value of loans	917,979		666,364
Bridge loans held-for-investment | Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	2,375	542
Bridge loans held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Transfers from loans held-for-sale to loans held-for-investment	0	0
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income	14,000	6,000
Fair value of loans	4,754,778		4,790,989
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	$ (191,903)	(60,901)
Number of loans | loan	1,116		1,173
Unpaid principal balance	$ 3,083,716		$ 3,340,949
Fair value of loans	$ 3,038,939		$ 3,488,074
Weighted average coupon rate (as a percent)	5.15%		5.17%
Contract maturities	6 years		6 years
Fair value of loans with 90+ day delinquencies	$ 12,623		$ 12,648
Number of loans in foreclosure | loan	9		9
Single Family Rental Loans Held For Investment At Fair Value | CAFL | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	22		18
Fair value of loans with 90+ day delinquencies	$ 52,725		$ 41,998
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	$ (1,384)	$ 0
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	239		245
Unpaid principal balance	$ 518,230		$ 348,232
Fair value of loans	$ 505,889		$ 358,309
Weighted average coupon rate (as a percent)	4.76%		4.73%
Contract maturities	11 years		12 years
Fair value of loans with 90+ day delinquencies	$ 5,301		$ 5,473
Number of loans in foreclosure | loan	5		7
Unpaid principal balance of loans in foreclosure	$ 4,153		$ 4,305
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	66,685		75,873
Single-Family Rental Loans, Held-For-Sale | Redwood | Loans Pledged As Collateral, Long Term debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	376,502		244,703
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	$ 4,086		$ 4,238
Number of loans with 90+ day delinquencies | loan	4		6
Fair value of loans with 90+ day delinquencies	$ 5,212		$ 5,384
Business Purpose Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,384		1,134
Unpaid principal balance	$ 921,208		$ 670,392
Fair value of loans	$ 917,979		$ 666,364
Weighted average coupon rate (as a percent)	6.38%		6.91%
Contract maturities	1 year		1 year
Fair value of loans with 90+ day delinquencies	$ 42,152		$ 18,043
Number of loans in foreclosure | loan	37		28
Unpaid principal balance of loans in foreclosure	$ 37,641		$ 14,257
Business Purpose Bridge Loans | Loans Pledged As Collateral, Short Term Debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	62,494		91,814
Business Purpose Bridge Loans | Loans Pledged As Collateral, Long Term debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments	815,580		554,597
Business Purpose Bridge Loans | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	$ 28,319		$ 14,218
Number of loans with 90+ day delinquencies | loan	56		31
Fair value of loans with 90+ day delinquencies	$ 32,830		$ 18,032
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	1,375		1,640
Unpaid principal balance	$ 288,823		$ 274,617
Fair value of loans	$ 291,971		$ 278,242
Weighted average coupon rate (as a percent)	6.77%		7.05%
Contract maturities	1 year
Fair value of loans with 90+ day delinquencies	$ 4,472		$ 0
Number of loans in foreclosure | loan	3		0
Unpaid principal balance of loans in foreclosure	$ 4,472		$ 0
Business Purpose Bridge Loans | CAFL | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	$ 7,847		$ 0
Number of loans with 90+ day delinquencies | loan	48		0
Fair value of loans with 90+ day delinquencies	$ 7,847		$ 0

Multifamily Loans (Details)

Multifamily Loans (Details) - Multifamily loans, held-for-investment, at fair value $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)loan	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)loan
Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	28		28
Loan principal | $	$ 453,140		$ 455,168
Fair value of loans | $	$ 451,804		$ 473,514
Weighted average coupon rate (as a percent)	4.25%		4.25%
Contract maturities	3 years		4 years
Number of loans in foreclosure | loan	0		0
Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	0		0
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) | $	$ (19,681)	$ (730)

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Trading		$ 173,684	$ 170,619
Available-for-sale		185,198	206,792
Total Real Estate Securities	[1]	$ 358,882	$ 377,411
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Real Estate Securities - Tradin

Real Estate Securities - Trading Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Investment Holdings [Line Items]
Real estate securities	$ 173,684		$ 170,619
Unpaid principal balance	234,732		235,306
Principal balance of securities acquired (1)	0	$ 15,880
Principal balance of securities sold (1)	0	34,743
Net market valuation gains (losses) recorded	(1,456)	21,349
Securities bought and sold during the same quarter	0	$ 2,000
Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	34,206		21,787
Unpaid principal balance	0		0
Subordinate
Investment Holdings [Line Items]
Real estate securities	139,478		148,832
Unpaid principal balance	234,732		235,306
Interest Only Senior Trading Securities | Senior IO Securities
Investment Holdings [Line Items]
Real estate securities	34,206		21,787
Interest Only Senior Trading Securities | Senior IO Securities | Sequoia
Investment Holdings [Line Items]
Real estate securities	20,000		15,000
RPL securities | Subordinate
Investment Holdings [Line Items]
Real estate securities	63,164		65,140
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Real estate securities	9,008		10,549
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities	$ 67,306		$ 73,143

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Investment Holdings [Line Items]
Available-for-sale	$ 185,198		$ 206,792
Fair value of securities acquired	10,000	$ 1,078
Fair value of securities sold	0	2,200
Principal balance of securities called	14,486	$ 3,444
Subordinate
Investment Holdings [Line Items]
Available-for-sale	185,198		206,792
Sequoia securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale	108,768		127,542
Multifamily loans, held-for-investment, at fair value | Subordinate
Investment Holdings [Line Items]
Available-for-sale	15,316		22,166
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Available-for-sale	$ 61,114		$ 57,084

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)entityinvestment	Dec. 31, 2021USD ($)investment
Investment Holdings [Line Items]
Number of AFS securities (in investments) | investment	82	85
Number of securities in unrealized loss position | investment	6	4
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | investment		1
Gross unrealized losses	$ 2,045	$ 297
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	$ 705
Variable Interest Entity, Not Primary Beneficiary
Investment Holdings [Line Items]
Number of entities called | entity	3
Unpaid principal balance of loans purchased	$ 102,000
Gain related to called security	300
Residential
Investment Holdings [Line Items]
AFS securities, contractual maturities, less than five years	12,000
Marketable securities, due from five to ten years	$ 4,000

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, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Principal balance	$ 230,201	$ 242,852
Credit reserve	(29,901)	(27,555)
Unamortized discount, net	(63,206)	(76,023)
Amortized cost	137,094	139,274
Gross unrealized gains	50,854	67,815
Gross unrealized losses	(2,045)	(297)
CECL allowance	(705)	0
Carrying Value	$ 185,198	$ 206,792

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, 2022USD ($)
Credit Reserve
Beginning balance	$ 0
Sales, calls, other	0
Ending Balance	705
Unamortized Discount, Net
Beginning balance	76,023
Ending Balance	63,206
Residential
Credit Reserve
Beginning balance	27,555
Amortization of net discount	0
Realized credit losses	(88)
Acquisitions	0
Sales, calls, other	(343)
Transfers to (release of) credit reserves, net	2,777
Ending Balance	29,901
Unamortized Discount, Net
Beginning balance	76,023
Amortization of net discount	(8,470)
Realized credit losses	0
Acquisitions	0
Sales, calls, other	(1,570)
Transfers to (release of) credit reserves, net	(2,777)
Ending Balance	$ 63,206

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, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months, Amortized Cost	$ 29,500	$ 7,078
Less Than 12 Consecutive Months, Unrealized Losses	(1,958)	(251)
Less Than 12 Consecutive Months, Fair Value	27,542	6,827
12 Consecutive Months or Longer, Amortized Cost	1,600	1,600
12 Consecutive Months or Longer, Unrealized Losses	(87)	(46)
12 Consecutive Months or Longer, Fair Value	$ 1,513	$ 1,554

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, 2022
Debt Securities, Available-for-sale [Line Items]
Default rate	0.70%
Loss severity	20.00%

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, 2022USD ($)
Rollforward of Allowance for Credit Losses
Beginning balance	$ 0
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	705
Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	0
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	$ 705

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, 2022	Mar. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 1,914	$ 2,608
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	0	200
Gross realized losses - sales	0	0
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 1,914	$ 2,408

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Net Investment Income [Line Items]
Servicing asset, fair value		$ 265,949	$ 310,953
Other Investments	[1]	635,581	641,969
Residential Loans
Net Investment Income [Line Items]
Servicing asset, fair value		302,837	350,923
HEIs
Net Investment Income [Line Items]
Servicing asset, fair value		227,133	192,740
Strategic Investments
Net Investment Income [Line Items]
Servicing asset, fair value		40,524	35,702
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value		43,023	44,231
Mortgage servicing rights
Net Investment Income [Line Items]
Servicing asset, fair value		19,739	12,438
Other
Net Investment Income [Line Items]
Loans held for investment		$ 2,325	$ 5,935
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)investmentpartnership	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership	2
Commitment to fund partnership	$ 148,000
Servicing asset, fair value	265,949			$ 310,953
Collateral amounts	1,683,830			1,306,932
Investment fair value changes, net	(6,120)		$ 45,087
Other income, net	5,983		3,843
Interest income	$ 189,400		128,305
Variable Interest Entity, Primary Beneficiary
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership	2
Investment fair value changes, net	$ 1,371		15,705
Interest income	140,316		94,871
Variable Interest Entity, Primary Beneficiary | HEI
Net Investment Income [Line Items]
Investment fair value changes, net	3,411		0
Interest income	0		0
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Net Investment Income [Line Items]
Value of our investments in VIEs(1)	1,040,987			1,033,913
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities | HEI
Net Investment Income [Line Items]
Value of our investments in VIEs(1)	13,753			10,451
Servicer advance financing
Net Investment Income [Line Items]
Collateral amounts	266,000
Equity investment income	5,000
Investment fair value changes, net	(3,000)		(200)
Servicer advance financing | Other Interest Income
Net Investment Income [Line Items]
Investment fair value changes, net			3,000
Held-for-sale residential loans
Net Investment Income [Line Items]
Servicing asset, fair value	302,837			350,923
Servicing asset, unpaid principal balance on underlying loan	12,700,000
Excess MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	43,023			44,231
Investment fair value changes, net	(1,000)		(2,000)
Fair value option elected aggregate carrying amount, asset	5,000
Interest income	4,000		3,000
Point HEI
Net Investment Income [Line Items]
Investment fair value changes, net	3,000
Other Investments, Interest Expense	1,000
MSRs
Net Investment Income [Line Items]
Servicing asset, fair value	19,739			12,438
Aggregate principal balance	2,360,000			$ 2,120,000
MSR income (losses), net	4,300		1,000
Shared home appreciation options | Redwood
Net Investment Income [Line Items]
Servicing asset, fair value	74,000
Shared home appreciation options | Point HEI
Net Investment Income [Line Items]
Servicing asset, fair value	153,000
Shared home appreciation options | Commitment To Fund Investment
Net Investment Income [Line Items]
Investment fair value changes, net	1,000		$ 5,000
HEIs
Net Investment Income [Line Items]
Payments to acquire other investments	125,000	$ 125,000
Other commitments made	250,000
Investments	70,000
Payments to acquire investments	117,000
Strategic Investments
Net Investment Income [Line Items]
Other income, net	$ 100
Strategic Investments | RWT Horizons
Net Investment Income [Line Items]
Number of investments made | investment	21
Investments	$ 25,000
Strategic Investments | Churchill Finance
Net Investment Income [Line Items]
Number of investments made | investment	2

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Investments [Line Items]
Total Servicer Advance Receivables	$ 265,949	$ 310,953
Servicer advance financing
Schedule of Investments [Line Items]
Principal and interest advances	87,083	94,148
Escrow advances (taxes and insurance advances)	138,465	172,847
Corporate advances	$ 40,401	$ 43,958

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value	$ 31,800,000	$ 23,150,000
Notional Amount	9,842,443,000	6,861,921,000
TBAs
Derivative [Line Items]
Notional Amount	7,940,000,000	3,310,000,000
Interest rate futures
Derivative [Line Items]
Notional Amount	281,000,000	72,000,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(80,260,000)	(3,317,000)
Notional Amount	4,596,748,000	1,619,790,000
Derivative Liabilities | Interest rate swaps
Derivative [Line Items]
Fair Value	(650,000)	(1,251,000)
Notional Amount	66,000,000	283,100,000
Derivative Liabilities | TBAs
Derivative [Line Items]
Fair Value	(64,883,000)	(658,000)
Notional Amount	3,535,000,000	870,000,000
Derivative Liabilities | Interest rate futures
Derivative [Line Items]
Fair Value	(236,000)	(905,000)
Notional Amount	83,000,000	62,500,000
Derivative Liabilities | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	(14,491,000)	(503,000)
Notional Amount	912,748,000	404,190,000
Derivative Assets
Derivative [Line Items]
Fair Value	112,060,000	26,467,000
Notional Amount	5,245,695,000	5,242,131,000
Derivative Assets | Interest rate swaps
Derivative [Line Items]
Fair Value	11,412,000	611,000
Notional Amount	460,000,000	161,500,000
Derivative Assets | TBAs
Derivative [Line Items]
Fair Value	95,631,000	2,880,000
Notional Amount	4,400,000,000	2,440,000,000
Derivative Assets | Interest rate futures
Derivative [Line Items]
Fair Value	2,907,000	25,000
Notional Amount	197,800,000	9,000,000
Derivative Assets | Swaptions
Derivative [Line Items]
Fair Value	0	18,318,000
Notional Amount	0	1,660,000,000
Derivative Assets | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	2,110,000	4,633,000
Notional Amount	$ 187,895,000	$ 971,631,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Notional amount	$ 9,842,443,000		$ 6,861,921,000
Accumulated other comprehensive income (loss)	1,445,266,000	$ 1,215,575,000	1,386,087,000	$ 1,110,899,000
Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(75,412,000)	(79,539,000)	(76,430,000)	$ (80,557,000)
Cash Flow Hedging | Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(75,000,000)		(76,000,000)
Interest Expense | Cash Flow Hedging
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified over the next 12 months	(4,000,000)
Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	1,293,000	75,562,000
Loan purchase commitments and forward sales commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	(42,000,000)	(52,000,000)
Interest Rate Swap And Swaptions
Derivative [Line Items]
Notional amount	526,000,000
TBAs
Derivative [Line Items]
Notional amount	7,940,000,000		3,310,000,000
Interest rate futures
Derivative [Line Items]
Notional amount	281,000,000		72,000,000
Interest rate contract
Derivative [Line Items]
Notional amount	381,000,000		$ 2,100,000,000
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Derivative gain (loss)	$ 92,000,000	$ 93,000,000

Derivative Financial Instrume_5

Derivative Financial Instruments - Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative [Line Items]
Total interest expense	$ (136,298)	$ (102,552)
Cash Flow Hedging | Interest rate contract
Derivative [Line Items]
Net interest expense on cash flows hedges	0	0
Realized net losses reclassified from other comprehensive income	(1,018)	(1,018)
Total interest expense	$ (1,018)	$ (1,018)

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Investment receivable		$ 49,313	$ 82,781
Accrued interest receivable		48,717	47,515
REO		27,179	36,126
Deferred tax asset		20,867	20,867
Operating lease right-of-use assets		17,917	18,772
Margin receivable		17,165	7,269
Fixed assets and leasehold improvements		10,105	9,019
Other		10,939	8,768
Total Other Assets	[1]	202,202	$ 231,117
Fixed assets		18,000
Accumulated depreciation		$ 8,000
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _2

Other Assets and Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Payable to non-controlling interests		$ 47,939	$ 42,670
Margin payable		41,966	24,368
Accrued interest payable		38,647	39,297
Accrued operating expenses		30,581	4,377
Current accounts payable		21,734	8,273
Operating lease liabilities		20,218	20,960
Accrued compensation		16,990	74,636
Residential loan and MSR repurchase reserve		9,529	9,306
Guarantee obligations		7,046	7,459
Bridge loan holdbacks		2,536	3,109
Other		7,264	11,333
Total Accrued Expenses and Other Liabilities	[1]	$ 244,450	$ 245,788
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Other Assets and Liabilities _3

Other Assets and Liabilities - REO Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)asset	Dec. 31, 2021asset
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 36,126
Amount related to transfers into REO	1,319
Liquidations	(10,886)
Unrealized gain (loss) resulting from market valuation adjustments on REO	620
Balance at End of Period	27,179
Realized loss from liquidation	$ 600
Number of REO properties recorded on balance sheet | asset	31	34
Legacy Sequoia
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 61
Amount related to transfers into REO	0
Liquidations	(504)
Unrealized gain (loss) resulting from market valuation adjustments on REO	443
Balance at End of Period	$ 0
Number of REO properties recorded on balance sheet | asset	0	2
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 2,028
Amount related to transfers into REO	1,047
Liquidations	(750)
Unrealized gain (loss) resulting from market valuation adjustments on REO	95
Balance at End of Period	$ 2,420
Number of REO properties recorded on balance sheet | asset	25	24
CAFL
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 20,969
Amount related to transfers into REO	0
Liquidations	(9,250)
Unrealized gain (loss) resulting from market valuation adjustments on REO	0
Balance at End of Period	$ 11,719
Number of REO properties recorded on balance sheet | asset	2	3
Bridge Loan
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 13,068
Amount related to transfers into REO	272
Liquidations	(382)
Unrealized gain (loss) resulting from market valuation adjustments on REO	82
Balance at End of Period	$ 13,040
Number of REO properties recorded on balance sheet | asset	4	5

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, 2022USD ($)facility	Dec. 31, 2021USD ($)facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 1,647,246,000	$ 2,177,362,000
Facilities
Short-term Debt [Line Items]
Number of Facilities | facility		12	13
Outstanding Balance		$ 1,393,853,000	$ 1,882,915,000
Facilities | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		7	7
Outstanding Balance		$ 1,223,247,000	$ 1,669,344,000
Limit		$ 2,750,000,000	$ 2,900,000,000
Weighted Average Interest Rate (as a percent)		2.13%	1.87%
Weighted Average Days Until Maturity		288 days	153 days
Facilities | Business purpose residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		1	2
Outstanding Balance		$ 95,161,000	$ 138,746,000
Limit		$ 350,000,000	$ 350,000,000
Weighted Average Interest Rate (as a percent)		3.45%	3.34%
Weighted Average Days Until Maturity		349 days	105 days
Facilities | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		4	4
Outstanding Balance		$ 75,445,000	$ 74,825,000
Limit		$ 0	$ 0
Weighted Average Interest Rate (as a percent)		1.25%	1.13%
Weighted Average Days Until Maturity		33 days	33 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 253,393,000	$ 294,447,000
Limit		$ 350,000,000	$ 350,000,000
Weighted Average Interest Rate (as a percent)		2.25%	1.90%
Weighted Average Days Until Maturity		216 days	306 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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Short-Term Debt - Collateral fo

Short-Term Debt - Collateral for Short-Term Debt Facilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Total collateral for financing	$ 1,899,357	$ 2,450,304
Facilities
Short-term Debt [Line Items]
Total real estate securities owned	97,322	99,005
Other assets	1,962	1,962
Total collateral for financing	1,562,735	2,107,451
Servicer advance financing
Short-term Debt [Line Items]
Total collateral for financing	336,622	342,853
Cash	9,615	6,480
Restricted cash	24,170	25,420
Servicer advances	302,837	310,953
Held-for-sale residential loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	1,334,272	1,838,797
Business purpose loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	129,179	167,687
On balance sheet | Facilities
Short-term Debt [Line Items]
Available-for-sale securities pledged as collateral	5,539	5,823
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	59,862	61,525
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 31,921	$ 31,657

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,730,000,000
Accrued interest payable on short-term debt	2,000,000	$ 2,000,000
Committed line of credit	10,000,000
Fair value of mortgage backed securities securing loan (in excess)	1,000,000
Amount outstanding under credit facilities	0	$ 0
Servicer advance financing
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	200,000
Unamortized capitalized commitment costs	$ 700,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Short-term debt	[1]	$ 1,647,246	$ 2,177,362
Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,675
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		31,770
Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,571,801
Facilities
Short-term Debt [Line Items]
Short-term debt		1,393,853	1,882,915
Facilities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,675
Facilities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		31,770
Facilities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,318,408
Facilities | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		1,223,247	1,669,344
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		1,223,247
Facilities | Business purpose loans
Short-term Debt [Line Items]
Short-term debt		95,161
Facilities | Business purpose loans | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Business purpose loans | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Facilities | Business purpose loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		95,161
Facilities | Real estate securities
Short-term Debt [Line Items]
Short-term debt		75,445
Facilities | Real estate securities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		43,675
Facilities | Real estate securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		31,770
Facilities | Real estate securities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing
Short-term Debt [Line Items]
Short-term debt		253,393	$ 294,447
Servicer advance financing | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Servicer advance financing | Over 90 days
Short-term Debt [Line Items]
Short-term debt		$ 253,393
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Asset-Backed Securities Issue_2

Asset-Backed Securities Issued - Components of Asset-Backed Securities Issued by Consolidated Securitization Entities Sponsored, Along With Other Selected Information (Details) - Asset-backed securities issued	Mar. 31, 2022USD ($)series	Dec. 31, 2021USD ($)series
Debt Instrument [Line Items]
ABS Issued, Net	$ 8,872,366,000	$ 9,253,557,000
Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	(491,704,000)	34,092,000
Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	9,118,542,000	8,970,474,000
Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	245,528,000	248,991,000
Legacy Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 220,301,000	$ 227,881,000
Number of series | series	20	20
Legacy Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (23,899,000)	$ (32,243,000)
Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	0.57%	0.23%
Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.05%	1.44%
Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 243,879,000	$ 259,505,000
Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	321,000	619,000
Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,627,920,000	$ 3,383,048,000
Number of series | series	17	16
Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (288,847,000)	$ (2,774,000)
Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.46%	2.40%
Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.03%	5.03%
Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,868,206,000	$ 3,353,073,000
Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	48,561,000	32,749,000
CAFL
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,012,841,000	$ 3,474,898,000
Number of series | series	16	16
CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (156,196,000)	$ 16,407,000
CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.64%	2.64%
CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.44%	5.24%
CAFL | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 2,998,376,000	$ 3,264,766,000
CAFL | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	170,661,000	193,725,000
Freddie Mac SLST
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,470,043,000	$ 1,588,463,000
Number of series | series	3	3
Debt instrument, face amount	$ 131,000,000	$ 145,000,000
Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (9,956,000)	$ 41,111,000
Freddie Mac SLST | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.50%	3.50%
Freddie Mac SLST | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	4.75%	4.75%
Freddie Mac SLST | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,463,505,000	$ 1,535,638,000
Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	16,494,000	11,714,000
Freddie Mac K-Series
Debt Instrument [Line Items]
ABS Issued, Net	$ 419,883,000	$ 441,857,000
Range of weighted average interest rates, by series	3.55%	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	$ (6,280,000)	$ 12,973,000
Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	416,672,000	418,700,000
Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	9,491,000	10,184,000
HEI
Debt Instrument [Line Items]
ABS Issued, Net	$ 121,378,000	$ 137,410,000
Range of weighted average interest rates, by series	3.27%	3.31%
Number of series | series	1	1
HEI | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (6,526,000)	$ (1,382,000)
HEI | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	127,904,000	138,792,000
HEI | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	0	0
CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount	$ 270,000,000	$ 270,000,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($)		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2052	Mar. 31, 2029	Jul. 31, 2023	Dec. 31, 2021
Debt Instrument [Line Items]
Net Carrying Value		$ 1,963,704,000					$ 1,640,833,000
Other assets	[1]	$ 202,202,000					231,117,000
VIE, ownership interest rate (as a percent)		80.00%
Variable Interest Entity, Primary Beneficiary | Point HEI
Debt Instrument [Line Items]
ABS issued, net, Amortized cost		$ 146,000,000
Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, Amortized cost		270,000,000
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST
Debt Instrument [Line Items]
ABS issued, net, Amortized cost			$ 210,000,000
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount		270,000,000					270,000,000
Restricted cash		8,000,000
Other assets		6,000,000
Total funding capacity		300,000,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount		131,000,000					$ 145,000,000
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount		129,000,000
Unamortized debt discount		$ 2,000,000
Debt Instrument interest rate		4.75%
VIE, ownership interest rate (as a percent)			100.00%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt Instrument interest rate				2.00%	2.00%	7.75%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Unamortized debt discount		$ 2,000,000
Net Carrying Value		$ 268,000,000
Debt Instrument interest rate		2.34%
Asset-backed securities issued | Contractual maturities of over five years
Debt Instrument [Line Items]
Contractual maturities of securities (in years)		5 years
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, 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, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 25,684	$ 25,401
Legacy Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	107	99
Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	9,598	8,452
CAFL
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	10,342	11,030
Freddie Mac SLST
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	4,405	4,630
Freddie Mac K-Series
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 1,232	$ 1,190

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, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Borrowings	$ 1,972,863,000	$ 1,650,576,000
Unamortized Deferred Issuance Costs / Discount	(9,159,000)	(9,743,000)
Net Carrying Value	1,963,704,000	1,640,833,000
Facilities
Debt Instrument [Line Items]
Borrowings	1,312,442,000	990,155,000
Unamortized Deferred Issuance Costs / Discount	(1,759,000)	(1,672,000)
Net Carrying Value	1,310,683,000	988,483,000
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Borrowings	139,500,000	139,500,000
Unamortized Deferred Issuance Costs / Discount	(768,000)	(779,000)
Net Carrying Value	$ 138,732,000	$ 138,721,000
Trust preferred securities and subordinated notes | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%	2.25%
Facility A | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 133,034,000	$ 144,385,000
Unamortized Deferred Issuance Costs / Discount	(208,000)	(313,000)
Net Carrying Value	$ 132,826,000	$ 144,072,000
Weighted Average Interest Rate (as a percent)	4.21%	4.21%
Facility B | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 102,351,000	$ 102,351,000
Unamortized Deferred Issuance Costs / Discount	(278,000)	(353,000)
Net Carrying Value	$ 102,073,000	$ 101,998,000
Weighted Average Interest Rate (as a percent)	4.21%	4.21%
Facility G | Recourse Subordinate Securities Financing | Affiliated Entity
Debt Instrument [Line Items]
Borrowings	$ 81,995,000	$ 91,707,000
Unamortized Deferred Issuance Costs / Discount	(313,000)	(376,000)
Net Carrying Value	$ 81,682,000	$ 91,331,000
Weighted Average Interest Rate (as a percent)	4.75%	4.75%
Non-Recourse BPL Financing, Facility D | Facilities
Debt Instrument [Line Items]
Borrowings	$ 430,026,000	$ 307,215,000
Unamortized Deferred Issuance Costs / Discount	(755,000)	(507,000)
Net Carrying Value	429,271,000	306,708,000
Limit	$ 600,000,000	$ 400,000,000
Non-Recourse BPL Financing, Facility D | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%	2.75%
Recourse BPL Financing, Facility E | Facilities
Debt Instrument [Line Items]
Borrowings	$ 301,200,000	$ 234,349,000
Unamortized Deferred Issuance Costs / Discount	(205,000)	(123,000)
Net Carrying Value	300,995,000	234,226,000
Limit	$ 450,000,000	$ 450,000,000
Recourse BPL Financing, Facility E | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%	2.21%
Recourse BPL Financing, Facility I | Facilities
Debt Instrument [Line Items]
Borrowings	$ 263,836,000	$ 110,148,000
Unamortized Deferred Issuance Costs / Discount	0	0
Net Carrying Value	263,836,000	110,148,000
Limit	$ 450,000,000	$ 450,000,000
Recourse BPL Financing, Facility I | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.24%	3.35%
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 198,629,000	$ 198,629,000
Unamortized Deferred Issuance Costs / Discount	(1,571,000)	(1,836,000)
Net Carrying Value	$ 197,058,000	$ 196,793,000
Weighted Average Interest Rate (as a percent)	4.75%	4.75%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200,000	$ 150,200,000
Unamortized Deferred Issuance Costs / Discount	(1,879,000)	(2,072,000)
Net Carrying Value	$ 148,321,000	$ 148,128,000
Weighted Average Interest Rate (as a percent)	5.625%	5.625%
5.75% exchangeable senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 172,092,000	$ 172,092,000
Unamortized Deferred Issuance Costs / Discount	(3,182,000)	(3,384,000)
Net Carrying Value	$ 168,910,000	$ 168,708,000
Weighted Average Interest Rate (as a percent)	5.75%	5.75%

Long-Term Debt - Schedule of _2

Long-Term Debt - Schedule of Collateral for Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Collateral amounts	$ 1,683,830	$ 1,306,932
Bridge Loan
Debt Instrument [Line Items]
Collateral amounts	815,580	554,597
Residential Real Estate
Debt Instrument [Line Items]
Collateral amounts	376,502	244,703
Commercial Real Estate | Facility A | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	226,974	247,227
Commercial Real Estate | Facility B | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	$ 264,774	$ 260,405

Long-Term Debt - Schedule of Ac

Long-Term Debt - Schedule of Accrued Interest Payable on Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Accrued interest payable	$ 10,134	$ 11,330
Facilities
Debt Instrument [Line Items]
Accrued interest payable	1,589	815
Convertible notes | 4.75% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	1,206	3,564
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Accrued interest payable	1,784	3,896
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Accrued interest payable	4,948	2,474
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Accrued interest payable	$ 607	$ 581

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands		3 Months Ended			12 Months Ended
		Mar. 31, 2022USD ($)repurchase_requestleaseloan	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)commitment	Dec. 31, 2018partnership	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Loss Contingencies [Line Items]
Lessee, number of leases | lease		7
Present value of remaining lease payments		$ 23,442
Operating lease expense		1,000		$ 1,000
Operating lease liabilities		$ 20,218			$ 20,960
Operating lease liability, statement of financial position [Extensible List]		Accounts Payable and Accrued Liabilities
Operating lease right-of-use assets		$ 17,917			18,772
Operating lease right-of-use asset, statement of financial position [Extensible List]		Other assets
Weighted average remaining lease term		6 years
Discount rate (as a percent)		5.10%
Derivative liabilities	[1]	$ 80,260			3,317
Net market valuation gains (losses)		(200)		1,000
Number of partnerships, committed to fund | partnership						2
Other income related to risk sharing agreement		460		882
Guarantee obligations		7,046			7,459
Guarantee obligations, credit reserve		5,000
Special purpose entities assets		34,000
Special purpose entities liabilities		7,000
Residential repurchase reserve		$ 9,529			9,306
Number of residential repurchase requests (in repurchase requests) | repurchase_request		0
Number of loans repurchased | loan		0
Residential loans repurchase provision (reversal)		$ 200		(100)
Aggregate amount of loss contingency reserves		2,000
Maximum
Loss Contingencies [Line Items]
Loss from arrangements		100
Residential Loans
Loss Contingencies [Line Items]
Loan principal		1,369,366			1,813,865
Fair value of loans		1,347,069			1,845,282
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Loans
Loss Contingencies [Line Items]
Fair value of loans		616			2,923
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement		500		1,000
Mortgage banking and investment activities
Loss Contingencies [Line Items]
Market valuation gains (losses) related to these investments		100		$ (100)
Guarantee Obligations
Loss Contingencies [Line Items]
Original unpaid balance of loans subject to risk sharing agreements							$ 3,190,000	$ 3,190,000
Potential future payments on loans		44,000
Loan principal		$ 504,000
Weighted average original FICO score		756
Weighted average original loan-to-value (LTV)		74.00%
Guarantee Obligations | Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance of loans in foreclosure		$ 200
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Fair value of loans		14,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Other commitments made		792,000
Derivative liabilities		(1,000)
Commitment To Acquire HEIs
Loss Contingencies [Line Items]
Other commitments made		70,000
Payments for other commitments		125,000	$ 125,000
Total commitment amount		250,000
Commitment To Fund Strategic Investment
Loss Contingencies [Line Items]
Other commitments made		300
Payments for other commitments		25,000
Commitment To Fund RWT Horizons Investments
Loss Contingencies [Line Items]
Other commitments made		$ 4,000
Payments for other commitments					$ 5,000
Number of commitments | commitment					2
[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, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.

Commitments and Contingencies_2

Commitments and Contingencies - Future Lease Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2022 (9 months)	$ 3,228
2023	4,428
2024	4,338
2025	3,475
2026	3,420
2027 and thereafter	4,553
Total Lease Commitments	23,442
Less: Imputed interest	(3,224)
Operating lease liabilities	$ 20,218	$ 20,960

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,386,087	$ 1,110,899
Total other comprehensive (loss) income	(17,547)	9,209
Balance at End of Period	1,445,266	1,215,575
Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	67,503	76,336
Other comprehensive (loss) income before reclassifications	(17,873)	10,986
Amounts reclassified from other accumulated comprehensive (income) loss	(692)	(2,795)
Total other comprehensive (loss) income	(18,565)	8,191
Balance at End of Period	48,938	84,527
Interest Rate Agreements Accounted for as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(76,430)	(80,557)
Other comprehensive (loss) income before reclassifications	0	0
Amounts reclassified from other accumulated comprehensive (income) loss	1,018	1,018
Total other comprehensive (loss) income	1,018	1,018
Balance at End of Period	$ (75,412)	$ (79,539)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ (6,120)	$ 45,087
Realized gains, net	(2,581)	(2,716)
Interest expense	136,298	102,552
Net income before provision for income taxes	28,457	108,800
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	705	(374)
Realized gains, net	(1,397)	(2,421)
Net income before provision for income taxes	(692)	(2,795)
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 ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Feb. 28, 2018
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock	$ 67,632,000	$ 115,000
Share Repurchase Plan, February 2018
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board			$ 100,000,000
Share repurchases (in shares)	0
Available authorization remaining for repurchase	$ 78,000,000
Convertible Debt Securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)		8,235,721
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)	17,154	15,460
At The Market Offerings | Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)	5,232,869
Net proceeds from issuance of common stock	$ 67,000,000
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	806,068

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, 2022	Mar. 31, 2021
Basic Earnings per Common Share:
Net income attributable to Redwood	$ 30,915	$ 97,257
Less: Dividends and undistributed earnings allocated to participating securities	(1,209)	(3,294)
Net income allocated to common shareholders	$ 29,706	$ 93,963
Basic weighted average common shares outstanding (in shares)	119,884,172	112,276,842
Basic Earnings per Common Share (in dollars per share)	$ 0.25	$ 0.84
Diluted Earnings per Common Share:
Net income attributable to Redwood	$ 30,915	$ 97,257
Less: Dividends and undistributed earnings allocated to participating securities	(1,348)	(2,951)
Add back: Interest expense on convertible notes for the period, net of tax	4,582	7,007
Net income allocated to common shareholders	$ 34,149	$ 101,313
Weighted average common shares outstanding (in shares)	119,884,172	112,276,842
Net effect of dilutive equity awards (in shares)	290,831	195,568
Net effect of assumed convertible notes conversion to common shares (in shares)	20,331,154	28,566,875
Diluted weighted average common shares outstanding (in shares)	140,506,157	141,039,285
Diluted Earnings (Loss) per Common Share (in dollars per share)	$ 0.24	$ 0.72

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 43,968	$ 42,383
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	850,000
Number of shares purchased by employees (in shares)	586,762	569,728
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	1,551	28,141
Number of stock awards granted (in shares)	0
Number of stock awards vested (in shares)	26,249,000
Number of stock awards forfeited (in shares)	341
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	498,223	431,072
Number of stock awards granted (in shares)	206,179,000
Number of stock awards vested (in shares)	117,725,000
Number of stock awards forfeited (in shares)	21,303,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	4,526,420	4,022,088
Number of stock awards granted (in shares)	645,870,000
Number of stock awards vested (in shares)	1,965,990
Stock units distributed (in shares)	141,538,000
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)	1,267,849	1,473,883
Number of stock awards granted (in shares)			206,034
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)	5,708,420	5,958,390
Redwood Incentive Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 13	$ 84
Redwood Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	5,360	3,589
Redwood Incentive Plan | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	27,374	26,473
Redwood Incentive Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 10,979	$ 12,237

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 42,383
Equity grants	6,657
Performance-based valuation adjustment	0
Equity grant forfeitures	(247)
Equity compensation expense	(4,825)
Unrecognized Compensation Cost at End of Period	43,968
Redwood Incentive Plan | Restricted Stock Awards
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	84
Equity grants	0
Performance-based valuation adjustment	0
Equity grant forfeitures	(5)
Equity compensation expense	(66)
Unrecognized Compensation Cost at End of Period	13
Redwood Incentive Plan | Restricted Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	3,589
Equity grants	2,484
Performance-based valuation adjustment	0
Equity grant forfeitures	(242)
Equity compensation expense	(471)
Unrecognized Compensation Cost at End of Period	5,360
Redwood Incentive Plan | Deferred Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	26,473
Equity grants	3,850
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(2,949)
Unrecognized Compensation Cost at End of Period	27,374
Redwood Incentive Plan | Performance Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	12,237
Equity grants	0
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(1,258)
Unrecognized Compensation Cost at End of Period	10,979
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	323
Performance-based valuation adjustment	0
Equity grant forfeitures	0
Equity compensation expense	(81)
Unrecognized Compensation Cost at End of Period	$ 242

Mortgage Banking Activities, _3

Mortgage Banking Activities, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 5,983	$ 3,843
Mortgage banking activities, net	16,315	82,607
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	617	1,023
Mortgage banking activities, net	7,935	61,435
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	(68,822)	(29,273)
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	2,786	721
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	73,354	88,964
Business Purpose Mortgage Banking Activities, Net:
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	2,135	1,044
Other income, net	14,405	6,022
Mortgage banking activities, net	8,380	21,172
Business Purpose Mortgage Banking Activities, Net: | Risk management derivatives
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Risk management derivatives	17,033	3,858
Business Purpose Mortgage Banking Activities, Net: | Single-family rental loans, at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Changes in fair value of assets	$ (25,193)	$ 10,248

Other Income (Details)

Other Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
MSR income, net (1)	$ 4,303	$ 697
Risk share income	460	882
Bridge loan fees	990	693
Other	230	1,571
Other income, net	$ 5,983	$ 3,843

General and Administrative Ex_3

General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses - Components of General and Administrative Expenses and Other Expenses (Details) - USD ($) $ in Thousands	Oct. 15, 2019	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Fixed compensation expense		$ 14,628	$ 11,805
Annual variable compensation expense		3,357	18,669
Long-term incentive award expense		5,660	4,169
Acquisition-related equity compensation expense		0	1,212
Systems and consulting		3,184	2,977
Office costs		2,025	1,808
Accounting and legal		1,675	714
Corporate costs		864	691
Other		3,461	1,506
Total General and Administrative Expenses		34,854	43,551
Commissions		2,614	1,263
Underwriting costs		1,372	1,685
Transfer and holding costs		479	611
Total Loan Acquisition Costs		4,465	3,559
Amortization of purchase-related intangible assets		3,534	3,873
Other		551	223
Total Other Expenses		4,085	4,096
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses		43,404	51,206
Settlement in Common Stock
Business Acquisition [Line Items]
Long-term incentive award expense		5,000	3,000
Settlement in Cash
Business Acquisition [Line Items]
Long-term incentive award expense		1,000	$ 1,000
Cash Based Retention Award
Business Acquisition [Line Items]
Cash-based retention awards granted		$ 2,000
Variable compensation expense, term		3 years
CAFL
Business Acquisition [Line Items]
Restricted stock awards (in shares)	588,260
Restricted stock awards	$ 10,000
Contingent consideration performance term	2 years

Taxes - Additional Information

Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Provision from (benefit for) income taxes	$ (2,458)	$ 11,543

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%
State statutory rate, net of Federal tax effect	8.60%	8.60%
Differences in taxable (loss) income from GAAP income	(20.40%)	(12.50%)
Change in valuation allowance	2.10%	(3.70%)
Dividends paid deduction	(19.90%)	(2.80%)
Effective Tax Rate	(8.60%)	10.60%

Segment Information - Additiona

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022segment
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, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Interest income	$ 189,400	$ 128,305
Interest expense	(136,298)	(102,552)
Net Interest Income	53,102	25,753
Non-interest Income
Mortgage banking activities, net	16,315	82,607
Investment fair value changes, net	(6,120)	45,087
Other income, net	5,983	3,843
Realized gains, net	2,581	2,716
Total non-interest income, net	18,759	134,253
General and administrative expenses	(34,854)	(43,551)
Loan acquisition costs	(4,465)	(3,559)
Other expenses	(4,085)	(4,096)
Benefit from (provision for) income taxes	2,458	(11,543)
Net Income	30,915	97,257
Non-cash amortization (expense) income, net	1,481	(6,230)
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	12,967	7,579
Interest expense	(6,936)	(4,747)
Net Interest Income	6,031	2,832
Non-interest Income
Mortgage banking activities, net	7,935	61,435
Investment fair value changes, net	0	0
Other income, net	0	0
Realized gains, net	0	0
Total non-interest income, net	7,935	61,435
General and administrative expenses	(6,101)	(12,689)
Loan acquisition costs	(1,417)	(1,404)
Other expenses	0	(6)
Benefit from (provision for) income taxes	1,007	(9,486)
Net Income	7,455	40,682
Non-cash amortization (expense) income, net	104	(3)
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	4,841	2,855
Interest expense	(2,568)	(1,599)
Net Interest Income	2,273	1,256
Non-interest Income
Mortgage banking activities, net	8,380	21,172
Investment fair value changes, net	0	0
Other income, net	575	122
Realized gains, net	0	0
Total non-interest income, net	8,955	21,294
General and administrative expenses	(10,472)	(10,194)
Loan acquisition costs	(3,048)	(1,492)
Other expenses	(3,534)	(3,777)
Benefit from (provision for) income taxes	3,281	(1,321)
Net Income	(2,545)	5,766
Non-cash amortization (expense) income, net	(3,890)	(4,098)
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income	170,572	116,509
Interest expense	(116,581)	(85,945)
Net Interest Income	53,991	30,564
Non-interest Income
Mortgage banking activities, net	0	0
Investment fair value changes, net	(5,406)	45,761
Other income, net	5,282	3,574
Realized gains, net	2,581	2,716
Total non-interest income, net	2,457	52,051
General and administrative expenses	(3,133)	(3,164)
Loan acquisition costs	0	(659)
Other expenses	(551)	(330)
Benefit from (provision for) income taxes	(1,830)	(736)
Net Income	50,934	77,726
Non-cash amortization (expense) income, net	7,300	(234)
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,020	1,362
Interest expense	(10,213)	(10,261)
Net Interest Income	(9,193)	(8,899)
Non-interest Income
Mortgage banking activities, net	0	0
Investment fair value changes, net	(714)	(674)
Other income, net	126	147
Realized gains, net	0	0
Total non-interest income, net	(588)	(527)
General and administrative expenses	(15,148)	(17,504)
Loan acquisition costs	0	(4)
Other expenses	0	17
Benefit from (provision for) income taxes	0	0
Net Income	(24,929)	(26,917)
Non-cash amortization (expense) income, net	$ (2,033)	$ (1,895)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Interest income	$ 189,400	$ 128,305
Interest expense	(136,298)	(102,552)
Net Interest Income	53,102	25,753
Investment fair value changes, net	(6,120)	45,087
Other	230	1,571
Total non-interest income, net	18,759	134,253
General and administrative expenses	(34,854)	(43,551)
Loan acquisition costs	(4,465)	(3,559)
Other expenses	(4,085)	(4,096)
Net Income	30,915	97,257
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,020	1,362
Interest expense	(10,213)	(10,261)
Net Interest Income	(9,193)	(8,899)
Investment fair value changes, net	(714)	(674)
Other	126	147
Total non-interest income, net	(588)	(527)
General and administrative expenses	(15,148)	(17,504)
Loan acquisition costs	0	(4)
Other expenses	0	17
Net Income	(24,929)	(26,917)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	1,012	1,348
Interest expense	(701)	(875)
Net Interest Income	311	473
Investment fair value changes, net	(714)	(699)
Other	0	0
Total non-interest income, net	(714)	(699)
General and administrative expenses	0	0
Loan acquisition costs	0	0
Other expenses	0	0
Net Income	(403)	(226)
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	8	14
Interest expense	(9,512)	(9,386)
Net Interest Income	(9,504)	(9,372)
Investment fair value changes, net	0	25
Other	126	147
Total non-interest income, net	126	172
General and administrative expenses	(15,148)	(17,504)
Loan acquisition costs	0	(4)
Other expenses	0	17
Net Income	$ (24,526)	$ (26,691)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Real estate securities	[1]	$ 358,882	$ 377,411
Other investments	[1]	635,581	641,969
Intangible assets	[1]	38,027	41,561
Total Assets	[1]	14,253,292	14,706,944
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		7,217,137	7,592,432
Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,754,778	4,790,989
Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		451,804	473,514
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Real estate securities		7,714	4,927
Other investments		0	0
Intangible assets		0	0
Total Assets		1,234,502	1,716,285
Operating Segments | Residential Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		1,101,006	1,673,235
Operating Segments | Residential Mortgage Banking | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Residential Mortgage Banking | Multifamily 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
Other investments		0	0
Intangible assets		38,027	41,561
Total Assets		607,991	464,967
Operating Segments | Business Purpose Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Business Purpose Mortgage Banking | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		496,280	347,860
Operating Segments | Business Purpose Mortgage Banking | 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		351,168	372,484
Other investments		595,056	606,267
Intangible assets		0	0
Total Assets		11,546,776	11,770,486
Operating Segments | Investment Portfolio | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,893,918	5,688,742
Operating Segments | Investment Portfolio | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,258,498	4,443,129
Operating Segments | Investment Portfolio | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		451,804	473,514
Corporate/ Other
Segment Reporting Information [Line Items]
Real estate securities		0	0
Other investments		40,525	35,702
Intangible assets		0	0
Total Assets		864,023	755,206
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		222,213	230,455
Corporate/ Other | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Corporate/ Other | Multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		$ 0	$ 0
[1]	Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At March 31, 2022 and December 31, 2021, assets of consolidated VIEs totaled $10,250,802 and $10,661,081, respectively. At March 31, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $9,202,156 and $9,619,347, respectively. See Note 4 for further discussion.