Redwood Trust (RWT) 10-Q 4 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		113,349,651
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000930236
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
ASSETS
Real estate securities, at fair value	[1]	$ 259,212	$ 377,411
Home equity investments	[1]	340,437	192,740
Other investments	[1]	412,762	449,229
Cash and cash equivalents	[1]	297,092	450,485
Restricted cash	[1]	71,996	80,999
Goodwill	[1]	23,373	0
Intangible assets	[1]	44,130	41,561
Derivative assets	[1]	65,213	26,467
Other assets	[1]	194,500	231,117
Total Assets	[1]	13,145,947	14,706,944
Liabilities
Short-term debt, net	[1]	2,110,279	2,177,362
Derivative liabilities	[1]	6,782	3,317
Accrued expenses and other liabilities	[1]	201,125	245,788
Asset-backed securities issued (includes $7,564,312 and $8,843,147 at fair value), net	[1]	8,139,293	9,253,557
Long-term debt, net	[1]	1,534,226	1,640,833
Total liabilities	[1]	11,991,705	13,320,857
Commitments and Contingencies (see Note 17)	[1]
Equity
Common stock, par value $0.01 per share, 395,000,000 shares authorized; 113,343,014 and 114,892,309 issued and outstanding	[1]	1,133	1,149
Additional paid-in capital	[1]	2,345,152	2,316,799
Accumulated other comprehensive loss	[1]	(64,935)	(8,927)
Cumulative earnings	[1]	1,197,428	1,316,890
Cumulative distributions to stockholders	[1]	(2,324,536)	(2,239,824)
Total equity	[1]	1,154,242	1,386,087
Total Liabilities and Equity	[1]	13,145,947	14,706,944
Residential loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	834,262	1,845,282
Residential loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,918,294	5,747,150
Business purpose loans, held-for-sale, at fair value
ASSETS
Fair value of loans	[1]	337,238	358,309
Business purpose loans, held-for-investment, at fair value
ASSETS
Fair value of loans	[1]	4,919,980	4,432,680
Consolidated Agency multifamily loans, at fair value
ASSETS
Fair value of loans	[1]	$ 427,458	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
ABS issued, net, At fair value		$ 7,564,312	$ 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)		113,343,014	114,892,309
Common stock, outstanding (in shares)		113,343,014	114,892,309
Assets	[1]	$ 13,145,947	$ 14,706,944
Liabilities	[1]	11,991,705	13,320,857
Restricted cash	[1]	71,996	80,999
Variable Interest Entity, Primary Beneficiary
Assets		9,449,163	10,661,081
Liabilities		$ 8,448,479	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest Income
Residential loans	$ 61,002	$ 53,993	$ 191,252	$ 146,081
Business purpose loans	95,197	67,129	270,430	201,640
Consolidated Agency multifamily loans	4,762	4,846	14,247	14,492
Real estate securities	6,989	14,242	30,772	33,184
Other interest income	9,712	5,512	27,816	17,325
Total interest income	177,662	145,722	534,517	412,722
Interest Expense
Short-term debt	(23,944)	(11,826)	(49,093)	(30,794)
Asset-backed securities issued	(90,910)	(73,732)	(285,464)	(222,712)
Long-term debt	(27,873)	(18,196)	(71,435)	(60,865)
Total interest expense	(142,727)	(103,754)	(405,992)	(314,371)
Net Interest Income	34,935	41,968	128,525	98,351
Non-interest (Loss) Income
Mortgage banking activities, net	16,535	63,163	2,833	200,189
Investment fair value changes, net	(57,697)	26,077	(151,789)	120,644
Other income, net	4,027	2,388	17,016	8,357
Realized gains, net	0	6,703	2,581	17,803
Total non-interest (loss) income, net	(37,135)	98,331	(129,359)	346,993
General and administrative expenses	(40,107)	(47,692)	(106,927)	(131,837)
Loan acquisition costs	(2,426)	(4,621)	(10,371)	(11,928)
Other expenses	(4,261)	(4,023)	(11,814)	(12,104)
Net (Loss) Income before Benefit from (Provision for) Income Taxes	(48,994)	83,963	(129,946)	289,475
(Provision for) benefit from income taxes	(1,417)	4,323	10,484	(13,907)
Net (Loss) Income	$ (50,411)	$ 88,286	$ (119,462)	$ 275,568
Basic (loss) earnings per common share (in dollars per share)	$ (0.44)	$ 0.75	$ (1.04)	$ 2.36
Diluted (loss) earnings per common share (in dollars per share)	$ (0.44)	$ 0.65	$ (1.04)	$ 2.03
Basic weighted average shares outstanding (in shares)	116,087,890	112,995,847	118,530,172	112,754,691
Diluted weighted average shares outstanding (in shares)	116,087,890	141,855,471	118,530,172	141,575,385

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net (Loss) Income	$ (50,411)	$ 88,286	$ (119,462)	$ 275,568
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale securities	(8,731)	(2,658)	(60,013)	19,552
Reclassification of unrealized loss (gain) on available-for-sale securities to net (loss) income	544	(6,200)	918	(16,495)
Reclassification of unrealized loss on interest rate agreements to net (loss) income	1,040	1,041	3,087	3,087
Total other comprehensive (loss) income	(7,147)	(7,817)	(56,008)	6,144
Total Comprehensive (Loss) Income	$ (57,558)	$ 80,469	$ (175,470)	$ 281,712

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	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 (Loss) Income	275,568				275,568
Other comprehensive income (loss)	6,144			6,144
Issuance of common stock (in shares)		2,391,777
Issuance of common stock	33,200	$ 24	33,176
Employee stock purchase and incentive plans (in shares)		179,979
Employee stock purchase and incentive plans	(534)	$ 2	(536)
Non-cash equity award compensation	14,758		14,758
Common dividends declared	(64,212)					(64,212)
Ending balance (in shares) at Sep. 30, 2021		114,661,762
Balance at End of Period at Sep. 30, 2021	1,375,823	$ 1,147	2,312,272	1,923	1,272,845	(2,212,364)
Beginning balance (in shares) at Jun. 30, 2021		113,052,780
Balance at beginning of period at Jun. 30, 2021	1,295,142	$ 1,131	2,287,412	9,740	1,184,559	(2,187,700)
Increase (Decrease) in Stockholders' Equity
Net (Loss) Income	88,286				88,286
Other comprehensive income (loss)	(7,817)			(7,817)
Issuance of common stock (in shares)		1,585,709
Issuance of common stock	19,826	$ 16	19,810
Direct stock purchase and dividend reinvestment plan	153		153
Employee stock purchase and incentive plans (in shares)		23,273
Employee stock purchase and incentive plans	0
Non-cash equity award compensation	4,897		4,897
Common dividends declared	(24,664)					(24,664)
Ending balance (in shares) at Sep. 30, 2021		114,661,762
Balance at End of Period at Sep. 30, 2021	1,375,823	$ 1,147	2,312,272	1,923	1,272,845	(2,212,364)
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 (Loss) Income	(119,462)				(119,462)
Other comprehensive income (loss)	(56,008)			(56,008)
Issuance of common stock (in shares)		5,232,869
Issuance of common stock	67,476	$ 52	67,424
Employee stock purchase and incentive plans (in shares)		346,727
Employee stock purchase and incentive plans	(1,148)	$ 3	(1,151)
Non-cash equity award compensation	18,505		18,505
Share repurchases (in shares)		(7,128,891)
Share repurchases	(56,496)	$ (71)	(56,425)
Common dividends declared	(84,712)					(84,712)
Ending balance (in shares) at Sep. 30, 2022		113,343,014
Balance at End of Period at Sep. 30, 2022	1,154,242	$ 1,133	2,345,152	(64,935)	1,197,428	(2,324,536)
Beginning balance (in shares) at Jun. 30, 2022		116,753,174
Balance at beginning of period at Jun. 30, 2022	1,258,091	$ 1,168	2,363,709	(57,788)	1,247,839	(2,296,837)
Increase (Decrease) in Stockholders' Equity
Net (Loss) Income	(50,411)				(50,411)
Other comprehensive income (loss)	(7,147)			(7,147)
Employee stock purchase and incentive plans (in shares)		38,698
Employee stock purchase and incentive plans	34		34
Non-cash equity award compensation	5,068		5,068
Share repurchases (in shares)		(3,448,858)
Share repurchases	(23,694)	$ (35)	(23,659)
Common dividends declared	(27,699)					(27,699)
Ending balance (in shares) at Sep. 30, 2022		113,343,014
Balance at End of Period at Sep. 30, 2022	$ 1,154,242	$ 1,133	$ 2,345,152	$ (64,935)	$ 1,197,428	$ (2,324,536)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Common dividends declared (in dollars per share)	$ 0.23	$ 0.21	$ 0.69	$ 0.55

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Cash Flows From Operating Activities:
Net (Loss) Income		$ (119,462)	$ 275,568
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Amortization of premiums, discounts, and securities issuance costs, net		2,041	300
Depreciation and amortization of non-financial assets		12,115	12,674
Originations of held-for-sale loans		(913,477)	(960,419)
Purchases of held-for-sale loans		(3,734,972)	(9,902,028)
Proceeds from sales of held-for-sale loans		4,110,949	6,948,264
Principal payments on held-for-sale loans		160,985	49,619
Net settlements of derivatives		158,868	27,412
Non-cash equity award compensation expense		18,505	14,758
Market valuation adjustments		183,487	(292,056)
Realized gains, net		(2,581)	(17,803)
Net change in:
Accrued interest receivable and other assets		56,156	(9,680)
Accrued interest payable and accrued expenses and other liabilities		(62,046)	73,120
Net cash used in operating activities		(129,432)	(3,780,271)
Cash Flows From Investing Activities:
Originations of loan investments		(1,377,714)	(557,327)
Purchases of loan investments		(22,006)	(35,713)
Proceeds from sales of loan investments		0	9,484
Principal payments on loan investments		1,666,514	1,950,151
Purchases of real estate securities		(15,006)	(29,342)
Sales of securities held in consolidated securitization trusts		0	8,197
Proceeds from sales of real estate securities		27,471	37,500
Principal payments on real estate securities		26,584	46,904
Principal repayments from servicer advance investments, net		65,772	58,248
Acquisition of Riverbend, net of cash acquired		(40,636)	0
Purchases of HEIs		(176,439)	(109,174)
Principal payments on HEIs		35,187	0
Other investing activities, net		(20,768)	(15,915)
Net cash provided by investing activities		168,959	1,363,013
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt		4,149,726	9,847,178
Repayments on short-term debt		(5,192,165)	(8,443,664)
Proceeds from issuance of asset-backed securities		1,420,289	2,822,785
Repayments on asset-backed securities issued		(1,288,294)	(1,549,766)
Proceeds from borrowings on long-term debt		1,678,805	948,674
Deferred long-term debt issuance costs paid		(17,925)	0
Repayments on long-term debt		(873,820)	(1,055,475)
Payments on repurchase of common stock		(56,496)	0
Taxes paid on equity award distributions		(1,571)	(957)
Net proceeds from issuance of common stock		67,899	20,248
Dividends paid		(84,712)	(64,212)
Other financing activities, net		(3,659)	(6,297)
Net cash (used in) provided by financing activities		(201,923)	2,518,514
Net (decrease) increase in cash, cash equivalents and restricted cash		(162,396)	101,256
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]	369,088	645,706
Cash paid during the period for:
Interest		378,691	298,507
Taxes paid		3,894	28,092
Supplemental Noncash Information:
Real estate securities retained from loan securitizations		0	9,375
Retention of mortgage servicing rights from loan securitizations and sales		4,543	7,065
Transfers from loans held-for-sale to loans held-for-investment		2,643,027	3,005,041
Transfers from loans held-for-investment to loans held-for-sale		0	44,922
Transfers from residential loans to real estate owned		4,033	21,655
Transfers from long-term debt to short-term debt		908,627	93,150
Right-of-use asset obtained in exchange for operating lease liability		0	1,135
Issuance of common stock for 5 Arches acquisition		$ 0	$ 13,375
[1]Cash, cash equivalents, and restricted cash includes cash and cash equivalents of $297 million and restricted cash of $72 million at September 30, 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		Sep. 30, 2022	Dec. 31, 2021
Statement of Cash Flows [Abstract]
Cash and cash equivalents	[1]	$ 297,092	$ 450,485
Restricted cash	[1]	$ 71,996	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Organization

Organization	9 Months Ended
	Sep. 30, 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.” Redwood Trust, Inc. was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. References herein to “Redwood,” the “company,” “we,” “us,” and “our” include Redwood Trust, Inc. and its consolidated subsidiaries, unless the context otherwise requires.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements presented herein are at September 30, 2022 and December 31, 2021, and for the three and nine months ended September 30, 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 September 30, 2022 and results of operations for all periods presented. The results of operations for the three and nine months ended September 30, 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 Consolidated Agency multifamily loans, 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 Home equity investments, at fair value on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans owned at these entities and interest expense on the ABS issued by these entities as well as fair value changes, other income and expenses associated with these entities' activities. See Note 15 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships. See Note 4 for further discussion on principles of consolidation. Use of Estimates The preparation of financial statements requires us to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. Our estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material. Acquisitions Riverbend Funding, LLC On July 1, 2022, we acquired Riverbend Funding LLC ("Riverbend"), a private mortgage lender for residential transitional and commercial real estate investors. Aggregate consideration for this acquisition included an initial cash payment of approximately $44 million (with a remaining estimated provisional purchase consideration payable subject to reconciliation and final settlement), and a potential earnout component to be paid contingent on Riverbend generating specified revenues over a threshold amount during the two-year period ending July 1, 2024, up to a maximum potential amount payable of $25.3 million. Based on the terms of the merger agreement, we determined that the earnout component should be accounted for as contingent purchase consideration, which was valued at zero at the acquisition. We accounted for the acquisition of Riverbend under the acquisition method of accounting pursuant to ASC 805. We performed the purchase price allocation and recorded underlying assets acquired and liabilities assumed based on their estimated fair values using the information available as of each acquisition date, with the excess of the purchase price allocated to intangible assets and goodwill. Through September 30, 2022, there were no significant changes to our purchase price allocations, which are summarized in the following table. Table 2.1 - Purchase Price Allocation (In Thousands) Riverbend Acquisition Date July 1, 2022 Purchase price: Cash $ 44,126 Provisional consideration payable 477 Contingent consideration, at fair value — Total consideration $ 44,603 Allocated to: Business purpose loans, at fair value $ 59,748 Other investments 2,443 Cash and cash equivalents 3,490 Other assets 13,306 Goodwill 23,373 Intangible assets 13,300 Total assets acquired 115,660 Short-term debt, net 67,423 Accrued expenses and other liabilities 3,634 Total liabilities assumed 71,057 Total net assets acquired $ 44,603 We recognized $1 million of acquisition costs related to our acquisition of Riverbend during the nine months ended September 30, 2022. These costs primarily related to accounting, consulting, and legal expenses and are included in our General and administrative expenses on our consolidated statements of income (loss). 5 Arches and CoreVest 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 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. Intangible Assets and Goodwill In connection with the acquisition of Riverbend on July 1, 2022, and 5 Arches and CoreVest in 2019, we identified and recorded finite-lived intangible assets totaling $13 million, $25 million and $57 million, respectively. The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at September 30, 2022. Table 2.2 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at September 30, 2022 Carrying Value at September 30, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (19,537) $ 36,763 7 Broker network 18,100 (12,972) 5,128 5 Non-compete agreements 11,400 (9,567) 1,833 3 Tradenames 4,400 (3,994) 406 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (50,470) $ 44,130 6 All of our intangible assets are amortized on a straight-line basis. For the three and nine months ended September 30, 2022, we recorded intangible asset amortization expense of $4 million and $11 million, respectively. For the three and nine months ended September 30, 2021, we recorded intangible asset amortization expense of $4 million and $12 million, respectively. Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year (In Thousands) September 30, 2022 2022 (3 months) $ 3,238 2023 12,430 2024 9,413 2025 8,426 2026 6,695 2027 and thereafter 3,928 Total Future Intangible Asset Amortization $ 44,130 On a quarterly basis, we evaluate our finite-lived intangible assets for impairment indicators and additionally evaluate the useful lives of our intangible assets to determine if revisions to the remaining periods of amortization are warranted. We reviewed our finite-lived intangible assets and determined that the estimated lives were appropriate and that there were no indicators of impairment at September 30, 2022. We recorded total goodwill of $23 million during the three months ended September 30, 2022 as a result of the total consideration exceeding the fair value of the net assets acquired from Riverbend. The goodwill was attributed to the expected business synergies and expansion into new business purpose loan markets, as well as access to the knowledgeable and experienced workforce continuing to provide complementary sourcing of assets for the business. We expect $23 million of this goodwill to be deductible for tax purposes. For reporting purposes, we included the intangible assets and goodwill from these acquisitions within our Business Purpose Mortgage Banking segment. Table 2.4 – Goodwill - Activity (In Thousands) Riverbend Beginning Balance $ — Goodwill recognized from acquisition 23,373 Impairment — Ending Balance $ 23,373 The potential liability resulting from the contingent consideration arrangement with Riverbend was recorded at its acquisition-date fair value of zero as part of the total consideration for the acquisition of Riverbend. At September 30, 2022, the estimated fair value of this contingent liability was zero on our consolidated balance sheets. Our contingent consideration liability is recorded at fair value and periodic changes in the estimated fair value are recorded through Other expenses on our consolidated statements of income (loss). During the period ended September 30, 2022, we did not record any contingent consideration income or expense related to our acquisition of Riverbend. See Note 17 for additional information on our contingent consideration liability. The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, as if the acquisition of Riverbend occurred as of January 1, 2021. These pro forma amounts have been adjusted to include the amortization of intangible assets for all periods. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2021 and should not be taken as indicative of our future consolidated results of operations. During the period from July 1, 2022 to September 30, 2022, Riverbend had net interest income of $1 million, non-interest income of $0.5 million, and a net loss of $1 million, which included intangible asset amortization expense of 0.6 million. Table 2.5 – Unaudited Pro Forma Financial Information Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Supplementary pro forma information: Net interest income $ 34,935 $ 43,174 $ 132,475 $ 100,570 Non-interest (loss) income (37,135) 102,436 (121,614) 355,456 Net (loss) income (50,411) 89,923 (117,090) 278,134

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 was issued to (1) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the accounting and disclosure requirements of ASU 2022-03 and we plan to adopt this new guidance by the required date. We do not anticipate that this update will have a material impact on our financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the current expected credit loss ("CECL") model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method," which will expand companies' abilities to hedge the benchmark interest rate risk of portfolios of financial assets (or beneficial interests) in a fair value hedge. The ASU expands the use of the portfolio layer method (previously referred to as the last-of-layer method) to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. The ASU also permits both prepayable and non-prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. The ASU further requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through September 30, 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 September 30, 2022, our primary LIBOR exposure included the following: $689 million of repo or warehouse debt, $37 million of interest rate swaps, $757 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, which also have fallback provisions for benchmark replacement. 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 a result of legislation that was passed in the state of New York, our trust preferred securities and subordinated notes are expected to convert to SOFR upon the cessation of LIBOR. Balance Sheet Netting Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets. The following table presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at September 30, 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 September 30, 2022 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,626 $ — $ 24,626 $ (23) $ (7,638) $ 16,965 TBAs 13,568 — 13,568 (529) (12,077) 962 Futures 26,275 — 26,275 (2) (10,675) 15,598 Total Assets $ 64,469 $ — $ 64,469 $ (554) $ (30,390) $ 33,525 Liabilities (2) Interest rate agreements $ (23) $ — $ (23) $ 23 $ — $ — TBAs (6,545) — (6,545) 529 1,280 (4,736) Futures (2) — (2) 2 — — Loan warehouse debt (224,370) — (224,370) 224,370 — — Total Liabilities $ (230,940) $ — $ (230,940) $ 224,924 $ 1,280 $ (4,736) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 18,929 $ — $ 18,929 $ (1,251) $ (16,046) $ 1,632 TBAs 2,880 — 2,880 (633) (704) 1,543 Futures 25 — 25 (25) — — Total Assets $ 21,834 $ — $ 21,834 $ (1,909) $ (16,750) $ 3,175 Liabilities (2) Interest rate agreements $ (1,251) $ — $ (1,251) $ 1,251 $ — $ — TBAs $ (658) $ — $ (658) $ 633 $ 15 $ (10) Futures (905) — (905) 25 880 — Loan warehouse debt (572,720) — (572,720) 572,720 — — Total Liabilities $ (575,534) $ — $ (575,534) $ 574,629 $ 895 $ (10) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, we have pledged excess cash collateral or financial assets to a counterparty (which, in certain circumstances, may be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, these excess amounts are excluded from the table; they are separately reported in our consolidated balance sheets as assets or liabilities, respectively. (2) Interest rate agreements and TBAs are components of derivative instruments on our consolidated balance sheets. Loan warehouse debt, which is secured by certain residential and business purpose loans, is a component of Short-term debt and Long-term debt on our consolidated balance sheets.

Principles of Consolidation

Principles of Consolidation	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2022, we held an 80% ownership interest in, and were responsible for the management of, each entity. See Note 11 for a further description of these entities and the investments they hold and Note 13 for additional information on the minority partner’s non-controlling interest. Additionally, we consolidated an entity that was formed to finance servicer advances that we determined was a VIE and for which we, through our control of one of the aforementioned partnerships, were the primary beneficiary. The servicer advance financing consists of non-recourse short-term securitization debt, secured by servicer advances. We consolidate the securitization entity, but the securitization entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. See Note 14 for additional information on the servicer advance financing. During 2021, we consolidated a HEI securitization entity formed to invest in HEIs that we determined was a VIE and for which we determined we were the primary beneficiary. At September 30, 2022 and December 31, 2021, we owned a portion of the subordinate certificates issued by the entity and had certain decision making rights for the entity. See Note 10 for a further description of this entity and the investments it holds and Note 13 for additional information on non-controlling interests in the entity. We consolidate the HEI securitization entity, but the securitization entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. For certain of our consolidated VIEs, we have elected to account for the assets and liabilities of these entities as collateralized financing entities ("CFE"). A CFE is a variable interest entity that holds financial assets and issues beneficial interests in those assets, and these beneficial interests have contractual recourse only to the related assets of the CFE. Accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities of a CFE using the more observable of the fair value of the financial assets or fair value of the financial liabilities. The net equity in an entity accounted for under the CFE election effectively represents the fair value of the beneficial interests we own in the entity. In addition to our consolidated VIEs for which we made the CFE election, we consolidate certain VIEs for which we did not make the CFE election, and elected to account for the ABS issued by these entities at amortized cost. These include our CAFL Bridge securitizations, Freddie Mac SLST re-securitization, and Servicing Investment entities. The following table presents a summary of the assets and liabilities of our consolidated VIEs. Table 4.1 – Assets and Liabilities of Consolidated VIEs September 30, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 198,161 $ 3,237,170 $ — $ 1,482,964 $ — $ — $ — $ 4,918,295 Business purpose loans, held-for-investment — — 3,531,229 — — — — 3,531,229 Consolidated Agency multifamily loans — — — — 427,458 — — 427,458 Home equity investments 139,728 139,728 Other investments — — — — — 307,723 — 307,723 Cash and cash equivalents — — — — — 15,923 — 15,923 Restricted cash 92 78 15,889 — — 18,569 3,540 38,168 Accrued interest receivable 226 11,295 17,497 5,247 1,299 720 — 36,284 Other assets 407 — 24,084 2,544 — 7,270 50 34,355 Total Assets $ 198,886 $ 3,248,543 $ 3,588,699 $ 1,490,755 $ 428,757 $ 350,205 $ 143,318 $ 9,449,163 Short-term debt $ — $ — $ — $ — $ — $ 233,104 $ — $ 233,104 Accrued interest payable 224 9,003 11,202 3,630 1,173 348 — 25,580 Accrued expenses and other liabilities (58) 80 1,903 — — 24,223 24,354 50,502 Asset-backed securities issued 197,354 3,013,249 3,179,487 1,249,041 395,411 — 104,751 8,139,293 Total Liabilities $ 197,520 $ 3,022,332 $ 3,192,592 $ 1,252,671 $ 396,584 $ 257,675 $ 129,105 $ 8,448,479 Value of our investments in VIEs (1) $ 1,214 $ 223,920 $ 393,015 $ 236,467 $ 32,047 $ 92,530 $ 14,213 $ 993,406 Number of VIEs 20 17 19 3 1 3 1 64 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Consolidated Agency multifamily loans — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) $ 2,634 $ 245,417 $ 339,419 $ 301,795 $ 31,657 $ 102,540 $ 10,451 $ 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, 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 two bridge loan securitizations for which we did not make the CFE election. As of September 30, 2022 and December 31, 2021, the fair value of our interests in the CAFL SFR securitizations were $314 million and $302 million, respectively, and the remaining values were associated with our interests in the CAFL Bridge securitizations, for which the ABS issued is carried at amortized historical cost. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of September 30, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $335 million and $445 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following table presents income (loss) from these VIEs for the three and nine months ended September 30, 2022 and 2021. Table 4.2 – Income (Loss) from Consolidated VIEs Three Months Ended September 30, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,475 $ 31,587 $ 61,439 $ 16,098 $ 4,762 $ 7,800 $ — $ 123,161 Interest expense (1,486) (27,541) (44,804) (12,829) (4,377) (2,606) — (93,643) Net interest income (11) 4,046 16,635 3,269 385 5,194 — 29,518 Non-interest income Investment fair value changes, net (328) (10,936) (4,527) (41,892) 316 (3,286) (584) (61,237) Other income — — 286 — — — — 286 Total non-interest income, net (328) (10,936) (4,241) (41,892) 316 (3,286) (584) (60,951) General and administrative expenses — — — — — (55) — (55) Other expenses — — — — — (372) — (372) Income (loss) from Consolidated VIEs $ (339) $ (6,890) $ 12,394 $ (38,623) $ 701 $ 1,481 $ (584) $ (31,860) Nine Months Ended September 30, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 3,595 $ 95,608 $ 195,381 $ 49,851 $ 14,247 $ 23,287 $ — $ 381,969 Interest expense (3,154) (84,041) (145,207) (40,286) (13,099) (6,110) — (291,897) Net interest income 441 11,567 50,174 9,565 1,148 17,177 — 90,072 Non-interest income Investment fair value changes, net (1,378) (20,644) (23,972) (74,796) 390 (11,259) 4,028 (127,631) Other income — — 631 — — — — 631 Total non-interest income, net (1,378) (20,644) (23,341) (74,796) 390 (11,259) 4,028 (127,000) General and administrative expenses — — — — — (130) — (130) Other expenses — — — — — (1,158) — (1,158) Income (loss) from Consolidated VIEs $ (937) $ (9,077) $ 26,833 $ (65,231) $ 1,538 $ 4,630 $ 4,028 $ (38,216) Three Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,042 $ 18,867 $ 48,937 $ 18,707 $ 4,846 $ 3,905 $ — $ 96,304 Interest expense (641) (15,368) (37,489) (15,774) (4,460) (1,018) — (74,750) Net interest income 401 3,499 11,448 2,933 386 2,887 — 21,554 Non-interest income Investment fair value changes, net (247) 3,314 2,943 13,849 554 (2,080) 47 18,380 Other income — — 10 — — — — 10 Total non-interest income, net (247) 3,314 2,953 13,849 554 (2,080) 47 18,390 General and administrative expenses — — — — — (60) — (60) Other expenses — — — — — (149) — (149) Income (loss) from Consolidated VIEs $ 154 $ 6,813 $ 14,401 $ 16,782 $ 940 $ 598 $ 47 $ 39,735 Nine Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 3,559 $ 48,842 $ 152,659 $ 58,372 $ 14,492 $ 12,168 $ — $ 290,092 Interest expense (2,271) (38,848) (118,543) (49,756) (13,294) (3,414) — (226,126) Net interest income 1,288 9,994 34,116 8,616 1,198 8,754 — 63,966 Non-interest income Investment fair value changes, net (1,162) 13,118 6,354 54,282 11,330 (5,646) 47 78,323 Other income — — 10 — — — — 10 Total non-interest income, net (1,162) 13,118 6,364 54,282 11,330 (5,646) 47 78,333 General and administrative expenses — — — — — (150) — (150) Other expenses — — — — — (591) — (591) Income (loss) from Consolidated VIEs $ 126 $ 23,112 $ 40,480 $ 62,898 $ 12,528 $ 2,367 $ 47 $ 141,558 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 September 30, 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 September 30, 2022, we did not call any of our unconsolidated Sequoia entities. During the nine months ended September 30, 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 (loss). At September 30, 2022, we held $158 million of loans for sale at fair value that were acquired following the calls. The following table presents information related to securitization transactions that occurred during the three and nine months ended September 30, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans transferred $ — $ — $ — $ 1,231,803 Trading securities retained, at fair value — — — 7,774 AFS securities retained, at fair value — — — 1,600 The following table summarizes the cash flows during the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Proceeds from new transfers $ — $ — $ — $ 1,266,063 MSR fees received 737 1,095 2,365 4,038 Funding of compensating interest, net (11) 54 (41) (116) Cash flows received on retained securities 3,096 16,724 20,380 42,117 The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three and nine months ended September 30, 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A N/A N/A Discount rates N/A N/A N/A N/A Credit loss assumptions N/A N/A N/A N/A Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 11 11 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.23 % 0.23 % The following table presents additional information at September 30, 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) September 30, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 28,511 $ 18,214 Subordinate securities, classified as AFS 78,065 127,542 Mortgage servicing rights 11,915 6,450 Maximum loss exposure (1) $ 118,491 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,146,817 $ 4,959,234 Principal balance of loans 30+ days delinquent 21,803 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 September 30, 2022 and December 31, 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood September 30, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at September 30, 2022 $ 11,915 $ 28,511 $ 78,065 Expected life (in years) (2) 7 7 16 Prepayment speed assumption (annual CPR) (2) 8 % 11 % 8 % Decrease in fair value from: 10% adverse change $ 334 $ 942 $ 570 25% adverse change 810 2,291 1,132 Discount rate assumption (2) 11 % 12 % 8 % Decrease in fair value from: 100 basis point increase $ 441 $ 1,001 $ 7,714 200 basis point increase 852 1,889 14,345 Credit loss assumption (2) N/A 0.04 % 0.04 % Decrease in fair value from: 10% higher losses N/A N/A $ 190 25% higher losses N/A N/A 254 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A N/A $ 1,528 25% higher losses N/A N/A 3,819 (1) Senior securities included $29 million and $18 million of interest-only securities at September 30, 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 September 30, 2022 and December 31, 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) September 30, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 348 $ 3,572 Subordinate 152,288 228,083 Total Mortgage-Backed Securities 152,636 231,655 Excess MSR 7,662 10,400 Total Investments in Third-Party Sponsored VIEs $ 160,298 $ 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	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale, at fair value $ 834,262 $ 834,262 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment, at fair value 4,918,294 4,918,294 5,747,150 5,747,150 Business purpose loans, held-for-sale, at fair value 337,238 337,238 358,309 358,309 Business purpose loans, held-for-investment, at fair value 4,919,980 4,919,980 4,432,680 4,432,680 Consolidated Agency multifamily loans, at fair value 427,458 427,458 473,514 473,514 Real estate securities, at fair value 259,212 259,212 377,411 377,411 Servicer advance investments (1) 274,934 274,934 350,923 350,923 MSRs (1) 24,796 24,796 12,438 12,438 Excess MSRs (1) 40,452 40,452 44,231 44,231 HEIs (1) 340,437 340,437 192,740 192,740 Other investments (1) 11,174 11,174 12,663 12,663 Cash and cash equivalents 297,092 297,092 450,485 450,485 Restricted cash 71,996 71,996 80,999 80,999 Derivative assets 65,213 65,213 26,467 26,467 REO (2) 3,683 4,105 36,126 39,272 Margin receivable (2) 6,683 6,683 7,269 7,269 Liabilities Short-term debt (3) $ 1,912,694 $ 1,912,694 $ 2,177,362 $ 2,177,362 Margin payable (4) 30,389 30,389 24,368 24,368 Guarantee obligations (4) 6,532 5,237 7,459 7,133 HEI securitization non-controlling interest 24,355 24,355 17,035 17,035 Derivative liabilities 6,782 6,782 3,317 3,317 ABS issued, net At fair value 7,564,312 7,564,312 8,843,147 8,843,147 At amortized cost 574,981 541,773 410,410 410,471 Other long-term debt, net (5) 868,851 858,810 988,483 989,570 Convertible notes, net (5) 724,205 651,888 513,629 537,300 Trust preferred securities and subordinated notes, net (5) 138,755 76,725 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) Short-term debt excludes short-term convertible notes, which are included below under "Convertible notes, net." (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are primarily included in Long-term debt, net on our consolidated balance sheets. Convertible notes, net also includes convertible notes classified as Short-term debt. See Note 14 for more information on Short-term debt. During the three and nine months ended September 30, 2022, we elected the fair value option for zero and $5 million of securities, respectively, $0.34 billion and $3.60 billion of residential loans (principal balance), respectively, and $630 million and $2.47 billion of business purpose loans (principal balance), respectively. Additionally, during the three and nine months ended September 30, 2022, we elected the fair value option for $80 million and $176 million of HEIs, respectively, and zero and $8 million of Other Investments, respectively. We anticipate electing the fair value option for all future purchases of residential and business purpose loans that we intend to sell to third parties or transfer to securitizations, as well as for certain securities we purchase, including IO securities, fixed-rate securities rated investment grade or higher and HEIs. The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at September 30, 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 September 30, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,752,524 $ — $ — $ 5,752,524 Business purpose loans 5,257,218 — — 5,257,218 Consolidated Agency multifamily loans 427,458 — — 427,458 Real estate securities 259,212 — — 259,212 Servicer advance investments 274,934 — — 274,934 MSRs 24,796 — — 24,796 Excess MSRs 40,452 — — 40,452 HEIs 340,437 — — 340,437 Other investments 11,174 — — 11,174 Derivative assets 65,213 39,843 24,626 744 Liabilities HEI securitization non-controlling interest $ 24,355 $ — $ — $ 24,355 Derivative liabilities 6,782 6,547 23 212 ABS issued 7,564,312 — — 7,564,312 December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Consolidated Agency multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 FHLBC stock 10 — 10 — 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 nine months ended September 30, 2022. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Consolidated Agency Multifamily Loans Trading Securities AFS 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 3,585,882 181,814 — 5,006 10,000 — — 176,439 8,293 Originations — 2,291,192 — — — — — — — Sales (3,702,359) (414,998) — (27,471) — — — — (3,044) Principal paydowns (734,577) (1,086,983) (5,936) (1,202) (25,381) (65,772) — (35,187) (137) Gains (losses) in net income (loss), net (985,958) (503,832) (40,120) (30,019) 12,560 (10,217) (3,779) 6,445 9,336 Unrealized losses in OCI, net — — — — (61,692) — — — — Other settlements, net (1) (2,862) (964) — — — — — — (3,579) Ending balance - $ 5,752,524 $ 5,257,218 $ 427,458 $ 116,933 $ 142,279 $ 274,934 $ 40,452 $ 340,437 $ 35,970 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 1,205,289 Principal paydowns — — (1,242,859) Gains (losses) in net income (loss), net (53,962) 7,320 (1,241,265) Other settlements, net (1) 50,364 — — Ending balance - September 30, 2022 $ 532 $ 24,355 $ 7,564,312 (1) Other settlements, net, for residential and business purpose loans, represents the transfer of loans to REO, for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental business purpose loans, and for MSRs and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments and interest rate lock commitments, are presented on a net basis. The following table presents the portion of fair value gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at September 30, 2022 and 2021. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and nine months ended September 30, 2022 and 2021 are not included in this presentation. Table 5.4 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at September 30, 2022 and 2021 Included in Net Income (Loss) Included in Net Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Assets Residential loans at Redwood $ (28,762) $ 6,553 $ (42,952) $ 9,371 Business purpose loans (10,967) 18,810 (39,019) 19,829 Net investments in consolidated Sequoia entities (1) (11,264) 2,885 (22,467) 11,779 Net investments in consolidated Freddie Mac SLST entities (1) (41,969) 13,781 (75,043) 54,006 Net investments in consolidated Freddie Mac K-Series entities (1) 316 555 390 11,330 Net investments in consolidated CAFL SFR entities (1) (6,585) 2,943 (24,365) 5,500 Net investment in consolidated HEI securitization entity (1) (1,652) 47 11,348 129 Trading securities (12,668) 1,547 (34,104) 3,824 Servicer advance investments (3,905) (2,079) (10,218) (3,179) MSRs 1,653 (235) 9,118 (49) Excess MSRs (351) (803) (3,779) (5,233) HEIs at Redwood (4,903) (41) (2,272) 21 Loan purchase and interest rate lock commitments 723 9,021 744 9,261 Liabilities HEI securitization non-controlling interest $ 1,068 $ (83) $ (7,320) $ (83) Loan purchase commitments (212) (2,570) (212) (2,550) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income (loss) related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at September 30, 2022 and 2021, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under CFE election, excluding REO. The following table presents information on assets recorded at fair value on a non-recurring basis at September 30, 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 September 30, 2022. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at September 30, 2022 Gain (Loss) for September 30, 2022 Carrying Fair Value Measurements Using Three Months Ended Nine Months Ended (In Thousands) Level 1 Level 2 Level 3 September 30, 2022 September 30, 2022 Assets Strategic investments 17,350 — — 17,350 (25) 10,000 The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (20,060) $ 9,045 $ (71,776) $ 57,145 Residential loan purchase commitments (2,716) 18,817 (53,236) 18,351 Single-family rental loans held-for-sale, at fair value (19,325) 19,205 (83,827) 54,675 Single-family rental loan interest rate lock commitments 19 (744) (666) — Bridge loans (9) 3,433 2,242 6,702 Trading securities (1) 148 32 4,249 (342) Risk management derivatives, net 48,363 3,539 164,137 38,117 Total mortgage banking activities, net (2) $ 6,420 $ 53,327 $ (38,877) $ 174,648 Investment Fair Value Changes, Net Residential loans held-for-sale, at fair value (called Sequoia loans) $ (6,614) $ 816 $ (18,876) $ 2,423 Bridge loans held-for-investment 2,482 900 (9,220) 4,142 Trading securities (12,668) 1,546 (34,268) 25,067 Servicer advance investments (3,905) (2,079) (10,217) (3,179) Excess MSRs (351) (803) (3,779) (5,233) Net investments in Legacy Sequoia entities (3) (328) (247) (1,378) (1,162) Net investments in Sequoia entities (3) (10,936) 3,314 (20,644) 13,118 Net investments in Freddie Mac SLST entities (3) (41,892) 13,849 (74,796) 54,282 Net investment in Freddie Mac K-Series entity (3) 316 554 390 11,330 Net investments in CAFL SFR entities (3) (6,585) 2,943 (24,365) 6,354 Net investment in HEI securitization entity (3) (584) 47 4,028 47 HEIs at Redwood (4,774) 5,622 (1,986) 13,017 Other investments 1,445 (385) 12,028 50 Risk management derivatives, net 27,241 — 33,609 — Credit (losses) recoveries on AFS securities (544) — (2,315) 388 Total investment fair value changes, net $ (57,697) $ 26,077 $ (151,789) $ 120,644 Other Income MSRs $ 1,236 $ (989) $ 8,031 $ (3,236) Other (852) — (852) — Total other income (4) $ 384 $ (989) $ 7,179 $ (3,236) Total Market Valuation Gains (Losses), Net $ (50,893) $ 78,415 $ (183,487) $ 292,056 (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes. (3) Includes changes in fair value of the residential loans held-for-investment, securitized HEIs, REO and the ABS issued at the entities, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election. (4) Other income presented above does not include net MSR fee income or provisions for repurchases of MSRs, as these amounts do not represent market valuation adjustments. At September 30, 2022, our valuation policy and processes had not changed from those described in our Annual Report on Form 10-K for the year ended December 31, 2021. The following table provides quantitative information about the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value. Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments September 30, 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 $ 718,347 Whole loan spread to swap rate 201 - 400 bps 202 bps Called loan dollar price $ 92 - $ 92 $ 92 Jumbo loans committed to sell 115,883 Whole loan committed sales price $ 96 - $ 102 $ 98 Loans held by Legacy Sequoia (2) 198,160 Liability price N/A N/A Loans held by Sequoia (2) 3,237,170 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,482,964 Liability price N/A N/A Business purpose loans: Single-family rental loans 281,105 Senior credit spread 210 - 210 bps 210 bps Subordinate credit spread 275 - 1,025 bps 458 bps Senior credit support 36 - 36 % 36 % IO discount rate 8 - 9 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Whole loan dollar price $ 84 - $ 99 $ 86 Single-family rental loans held by CAFL (2) 3,018,994 Liability price N/A N/A Bridge loans 1,957,119 Whole loan discount rate 5 - 15 % 9 % Senior credit spread 285 - 285 bps 285 bps Subordinate credit spread 345 - 1,200 % 680 % Senior credit support 43 - 43 % 43 % Prepayment rate (annual CPR) — - — % — % Multifamily loans held by Freddie Mac K-Series (2) 427,458 Liability price N/A N/A Trading and AFS securities 259,212 Discount rate 5 - 18 % 10 % Prepayment rate (annual CPR) 6 - 65 % 12 % Default rate — - 12 % 0.4 % Loss severity — - 50 % 25 % CRT dollar price $ 73 - $ 93 $ 85 Servicer advance investments 274,934 Discount rate 2 - 5 % 4 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 18 bps 7 bps MSRs 24,796 Discount rate 11 - 69 % 11 % Prepayment rate (annual CPR) 4 - 28 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) September 30, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) Excess MSRs 40,452 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 18 % Excess mortgage servicing income 8 - 19 bps 11 bps HEIs 200,709 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (7) - 4 % 3 % HEIs held by HEI securitization entity 139,728 Liability price N/A N/A N/A Residential loan purchase commitments, net 531 Whole loan spread to swap rate 201 - 201 bps 201 bps Pull-through rate 26 - 100 % 78 % Committed sales price $ 99 - $ 102 $ 100 Liabilities ABS issued (2) : At consolidated Sequoia entities 3,210,603 Discount rate 4 - 18 % 6 % Prepayment rate (annual CPR) 5 - 24 % 13 % Default rate — - 33 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 2,703,223 Discount rate 0.3 - 16 % 6 % Prepayment rate (annual CPR) — - 3 % 0.2 % Default rate 4 - 21 % 6 % Loss severity 30 - 40 % 30 % At consolidated Freddie Mac SLST entities 1,150,323 Discount rate 5 - 8 % 6 % Prepayment rate (annual CPR) 6 - 8 % 6 % Default rate 13 - 14 % 14 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 395,411 Discount rate 3 - 9 % 5 % At consolidated HEI securitization entity (4) 104,751 Discount rate 9 - 15 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (7) - 4 % 3 % (1) The weighted average input values for all loan types are based on unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) The fair value of the loans and HEIs held by consolidated entities is based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At September 30, 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 $224 million, $314 million, $335 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 in isolation — such as anticipated credit losses, prepayment rates, interest rates, or other valuation assumptions — would likely result in a significantly lower or higher fair value measurement. Included in Note 5 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 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. As of September 30, 2022, the carrying value of these investments was $10 million.

Residential Loans

Residential Loans	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 834,262 $ — $ — $ — $ 834,262 Held-for-investment at fair value — 198,160 3,237,170 1,482,964 4,918,294 Total Residential Loans $ 834,262 $ 198,160 $ 3,237,170 $ 1,482,964 $ 5,752,556 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 September 30, 2022, we owned mortgage servicing rights associated with $853 million (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at September 30, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 1,054 2,196 Unpaid principal balance $ 874,412 $ 1,813,865 Fair value of loans $ 834,262 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 828,192 $ 1,838,797 Weighted average coupon 4.99 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 209 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans acquired (1) $ 336,698 $ 3,167,186 $ 3,597,339 $ 9,747,867 Principal balance of loans sold 662,302 2,360,862 3,727,993 6,787,490 Principal balance of loans transferred to HFI — 448,878 687,192 1,623,000 Net market valuation gains (losses) recorded (2) (26,674) 9,861 (90,652) 59,568 (1) For the three and nine months ended September 30, 2022, includes zero and $102 million of loans acquired through calls of zero and three seasoned Sequoia securitizations, respectively. (2) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,372 4,666 11,054 Unpaid principal balance $ 218,298 $ 3,902,938 $ 1,753,301 Fair value of loans $ 198,160 $ 3,237,170 $ 1,482,964 Weighted average coupon 3.23 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 33 13 1,295 Unpaid principal balance of loans with 90+ day delinquencies $ 5,532 $ 11,404 $ 223,260 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 16 6 332 Unpaid principal balance of loans in foreclosure $ 1,852 $ 5,928 $ 56,755 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. For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ — N/A N/A $ 464,189 N/A Net market valuation gains (losses) recorded 5,182 (202,825) (104,040) (2,580) (11,663) (13,836) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 1,669,683 N/A Net market valuation gains (losses) recorded 12,286 (685,042) (224,543) 9,896 (27,076) 5,177 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 281,105 — $ 56,133 $ — $ 337,238 Held-for-investment at fair value — 3,018,994 1,388,750 512,236 4,919,980 Total Business Purpose Loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 $ 5,257,218 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 SFR loans at September 30, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% having original maturities of 30 years. The outstanding bridge loans held-for-investment at September 30, 2022 were first-lien, interest-only loans with original maturities of six At September 30, 2022, we had commitments to fund bridge loans of $990 million. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 30, 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 $ 99,281 $ 470,425 $ 392,620 $ 208,938 Principal balance of loans acquired (1) — 59,977 2,463 35,713 Principal balance of loans sold to third parties 37,202 48,279 — 253 Fair value of loans transferred (2) 266,181 77,362 332,670 276,354 Mortgage banking activities income (loss) recorded (4) (19,325) (110) 19,205 3,691 Investment fair value changes recorded (5) — (679) — 900 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 865,253 $ 1,424,604 $ 957,935 $ 557,327 Principal balance of loans acquired (1) 100,349 81,983 2,463 35,713 Principal balance of loans sold to third parties 368,704 48,279 — 9,484 Fair value of loans transferred (2) 561,218 465,966 799,375 276,354 Fair value of loans transferred from HFI to HFS (3) — — 44,922 N/A Mortgage banking activities income (loss) recorded (4) (83,827) 1,129 54,675 5,212 Investment fair value changes recorded (5) — (6,747) — 4,142 (1) Bridge at Redwood for the three and nine months ended September 30, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For SFR at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations. For Bridge at Redwood, represents the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and nine months ended September 30, 2022, we recorded loan origination fee income of $10 million and $36 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans and bridge loans owned by these entities. 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following table provides the activity of business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 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 $ (108,980) $ 1,906 $ (34,803) $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (419,182) $ 50 $ (96,934) $ — REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2022 SFR at Redwood SFR at CAFL (1) Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 202 1,142 1,585 1,994 Unpaid principal balance $ 317,556 $ 3,316,706 $ 1,452,180 $ 510,839 Fair value of loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 Weighted average coupon 5.14 % 5.22 % 8.06 % 8.04 % Weighted average remaining loan term (years) 15 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 279,846 N/A $ 702,899 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 699,704 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 15 51 47 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 31,296 $ 33,822 $ 7,063 Fair value of loans with 90+ day delinquencies (2) $ 528 N/A $ 31,140 $ 7,144 Number of loans in foreclosure (3) 1 7 49 — Unpaid principal balance of loans in foreclosure $ 536 $ 10,335 $ 33,471 $ — Fair value of loans in foreclosure (3) $ 528 N/A $ 30,789 $ — December 31, 2021 SFR at Redwood SFR at CAFL (1) 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 (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (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 (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. 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 our consolidated Agency multifamily loans at September 30, 2022 and December 31, 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 449,232 $ 455,168 Fair value of loans $ 427,458 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at September 30, 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 and nine months ended September 30, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net market valuation gains (losses) recorded (1) $ (13,691) $ (487) $ (40,120) $ (3,745) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Business Purpose Loans

Business Purpose Loans	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 834,262 $ — $ — $ — $ 834,262 Held-for-investment at fair value — 198,160 3,237,170 1,482,964 4,918,294 Total Residential Loans $ 834,262 $ 198,160 $ 3,237,170 $ 1,482,964 $ 5,752,556 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 September 30, 2022, we owned mortgage servicing rights associated with $853 million (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at September 30, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 1,054 2,196 Unpaid principal balance $ 874,412 $ 1,813,865 Fair value of loans $ 834,262 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 828,192 $ 1,838,797 Weighted average coupon 4.99 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 209 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans acquired (1) $ 336,698 $ 3,167,186 $ 3,597,339 $ 9,747,867 Principal balance of loans sold 662,302 2,360,862 3,727,993 6,787,490 Principal balance of loans transferred to HFI — 448,878 687,192 1,623,000 Net market valuation gains (losses) recorded (2) (26,674) 9,861 (90,652) 59,568 (1) For the three and nine months ended September 30, 2022, includes zero and $102 million of loans acquired through calls of zero and three seasoned Sequoia securitizations, respectively. (2) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,372 4,666 11,054 Unpaid principal balance $ 218,298 $ 3,902,938 $ 1,753,301 Fair value of loans $ 198,160 $ 3,237,170 $ 1,482,964 Weighted average coupon 3.23 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 33 13 1,295 Unpaid principal balance of loans with 90+ day delinquencies $ 5,532 $ 11,404 $ 223,260 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 16 6 332 Unpaid principal balance of loans in foreclosure $ 1,852 $ 5,928 $ 56,755 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. For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ — N/A N/A $ 464,189 N/A Net market valuation gains (losses) recorded 5,182 (202,825) (104,040) (2,580) (11,663) (13,836) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 1,669,683 N/A Net market valuation gains (losses) recorded 12,286 (685,042) (224,543) 9,896 (27,076) 5,177 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 281,105 — $ 56,133 $ — $ 337,238 Held-for-investment at fair value — 3,018,994 1,388,750 512,236 4,919,980 Total Business Purpose Loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 $ 5,257,218 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 SFR loans at September 30, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% having original maturities of 30 years. The outstanding bridge loans held-for-investment at September 30, 2022 were first-lien, interest-only loans with original maturities of six At September 30, 2022, we had commitments to fund bridge loans of $990 million. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 30, 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 $ 99,281 $ 470,425 $ 392,620 $ 208,938 Principal balance of loans acquired (1) — 59,977 2,463 35,713 Principal balance of loans sold to third parties 37,202 48,279 — 253 Fair value of loans transferred (2) 266,181 77,362 332,670 276,354 Mortgage banking activities income (loss) recorded (4) (19,325) (110) 19,205 3,691 Investment fair value changes recorded (5) — (679) — 900 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 865,253 $ 1,424,604 $ 957,935 $ 557,327 Principal balance of loans acquired (1) 100,349 81,983 2,463 35,713 Principal balance of loans sold to third parties 368,704 48,279 — 9,484 Fair value of loans transferred (2) 561,218 465,966 799,375 276,354 Fair value of loans transferred from HFI to HFS (3) — — 44,922 N/A Mortgage banking activities income (loss) recorded (4) (83,827) 1,129 54,675 5,212 Investment fair value changes recorded (5) — (6,747) — 4,142 (1) Bridge at Redwood for the three and nine months ended September 30, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For SFR at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations. For Bridge at Redwood, represents the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and nine months ended September 30, 2022, we recorded loan origination fee income of $10 million and $36 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans and bridge loans owned by these entities. 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following table provides the activity of business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 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 $ (108,980) $ 1,906 $ (34,803) $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (419,182) $ 50 $ (96,934) $ — REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2022 SFR at Redwood SFR at CAFL (1) Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 202 1,142 1,585 1,994 Unpaid principal balance $ 317,556 $ 3,316,706 $ 1,452,180 $ 510,839 Fair value of loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 Weighted average coupon 5.14 % 5.22 % 8.06 % 8.04 % Weighted average remaining loan term (years) 15 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 279,846 N/A $ 702,899 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 699,704 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 15 51 47 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 31,296 $ 33,822 $ 7,063 Fair value of loans with 90+ day delinquencies (2) $ 528 N/A $ 31,140 $ 7,144 Number of loans in foreclosure (3) 1 7 49 — Unpaid principal balance of loans in foreclosure $ 536 $ 10,335 $ 33,471 $ — Fair value of loans in foreclosure (3) $ 528 N/A $ 30,789 $ — December 31, 2021 SFR at Redwood SFR at CAFL (1) 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 (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (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 (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. 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 our consolidated Agency multifamily loans at September 30, 2022 and December 31, 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 449,232 $ 455,168 Fair value of loans $ 427,458 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at September 30, 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 and nine months ended September 30, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net market valuation gains (losses) recorded (1) $ (13,691) $ (487) $ (40,120) $ (3,745) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Consolidated Agency Multifamily

Consolidated Agency Multifamily Loans	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Consolidated Agency Multifamily Loans	Residential Loans We acquire residential loans from third-party originators and may sell or securitize these loans or hold them for investment. The following table summarizes the classifications and carrying values of the residential loans owned at Redwood and at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 834,262 $ — $ — $ — $ 834,262 Held-for-investment at fair value — 198,160 3,237,170 1,482,964 4,918,294 Total Residential Loans $ 834,262 $ 198,160 $ 3,237,170 $ 1,482,964 $ 5,752,556 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 September 30, 2022, we owned mortgage servicing rights associated with $853 million (principal balance) of residential loans owned at Redwood that were purchased from third-party originators. The value of these MSRs is included in the carrying value of the associated loans on our consolidated balance sheets. We contract with licensed sub-servicers that perform servicing functions for these loans. Residential Loans Held-for-Sale The following table summarizes the characteristics of residential loans held-for-sale at September 30, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 1,054 2,196 Unpaid principal balance $ 874,412 $ 1,813,865 Fair value of loans $ 834,262 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 828,192 $ 1,838,797 Weighted average coupon 4.99 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 209 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 2,304 Number of loans in foreclosure — — The following table provides the activity of residential loans held-for-sale during the three and nine months ended September 30, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans acquired (1) $ 336,698 $ 3,167,186 $ 3,597,339 $ 9,747,867 Principal balance of loans sold 662,302 2,360,862 3,727,993 6,787,490 Principal balance of loans transferred to HFI — 448,878 687,192 1,623,000 Net market valuation gains (losses) recorded (2) (26,674) 9,861 (90,652) 59,568 (1) For the three and nine months ended September 30, 2022, includes zero and $102 million of loans acquired through calls of zero and three seasoned Sequoia securitizations, respectively. (2) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss). Residential Loans Held-for-Investment at Fair Value We invest in residential subordinate securities issued by Legacy Sequoia, Sequoia and Freddie Mac SLST securitization trusts and consolidate the underlying residential loans owned by these entities for financial reporting purposes in accordance with GAAP. The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,372 4,666 11,054 Unpaid principal balance $ 218,298 $ 3,902,938 $ 1,753,301 Fair value of loans $ 198,160 $ 3,237,170 $ 1,482,964 Weighted average coupon 3.23 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 33 13 1,295 Unpaid principal balance of loans with 90+ day delinquencies $ 5,532 $ 11,404 $ 223,260 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 16 6 332 Unpaid principal balance of loans in foreclosure $ 1,852 $ 5,928 $ 56,755 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. For loans held at our consolidated Legacy Sequoia, Sequoia, and Freddie Mac SLST entities, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines, and are recorded in Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2. Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ — N/A N/A $ 464,189 N/A Net market valuation gains (losses) recorded 5,182 (202,825) (104,040) (2,580) (11,663) (13,836) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 1,669,683 N/A Net market valuation gains (losses) recorded 12,286 (685,042) (224,543) 9,896 (27,076) 5,177 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations. REO See Note 13 for detail on residential loans transferred to REO during 2022. We originate and invest in business purpose loans, including single-family rental ("SFR") loans and bridge loans. The following table summarizes the classifications and carrying values of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.1 – Classifications and Carrying Values of Business Purpose Loans September 30, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 281,105 — $ 56,133 $ — $ 337,238 Held-for-investment at fair value — 3,018,994 1,388,750 512,236 4,919,980 Total Business Purpose Loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 $ 5,257,218 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 SFR loans at September 30, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% having original maturities of 30 years. The outstanding bridge loans held-for-investment at September 30, 2022 were first-lien, interest-only loans with original maturities of six At September 30, 2022, we had commitments to fund bridge loans of $990 million. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 30, 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 $ 99,281 $ 470,425 $ 392,620 $ 208,938 Principal balance of loans acquired (1) — 59,977 2,463 35,713 Principal balance of loans sold to third parties 37,202 48,279 — 253 Fair value of loans transferred (2) 266,181 77,362 332,670 276,354 Mortgage banking activities income (loss) recorded (4) (19,325) (110) 19,205 3,691 Investment fair value changes recorded (5) — (679) — 900 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 865,253 $ 1,424,604 $ 957,935 $ 557,327 Principal balance of loans acquired (1) 100,349 81,983 2,463 35,713 Principal balance of loans sold to third parties 368,704 48,279 — 9,484 Fair value of loans transferred (2) 561,218 465,966 799,375 276,354 Fair value of loans transferred from HFI to HFS (3) — — 44,922 N/A Mortgage banking activities income (loss) recorded (4) (83,827) 1,129 54,675 5,212 Investment fair value changes recorded (5) — (6,747) — 4,142 (1) Bridge at Redwood for the three and nine months ended September 30, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For SFR at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations. For Bridge at Redwood, represents the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and nine months ended September 30, 2022, we recorded loan origination fee income of $10 million and $36 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Business Purpose Loans Held-for-Investment at CAFL We invest in securities issued by CAFL securitizations sponsored by CoreVest and consolidate the underlying single-family rental loans and bridge loans owned by these entities. 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, and are recorded through Investment fair value changes, net on our consolidated statements of income (loss). The net impact to our income statement associated with our economic investments in these securitization entities is presented in Table 4.2 . The following table provides the activity of business purpose loans held-for-investment at CAFL during the three and nine months ended September 30, 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 $ (108,980) $ 1,906 $ (34,803) $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (419,182) $ 50 $ (96,934) $ — REO See Note 13 for detail on business purpose loans transferred to REO during 2022. Business Purpose Loan Characteristics The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2022 SFR at Redwood SFR at CAFL (1) Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 202 1,142 1,585 1,994 Unpaid principal balance $ 317,556 $ 3,316,706 $ 1,452,180 $ 510,839 Fair value of loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 Weighted average coupon 5.14 % 5.22 % 8.06 % 8.04 % Weighted average remaining loan term (years) 15 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 279,846 N/A $ 702,899 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 699,704 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 15 51 47 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 31,296 $ 33,822 $ 7,063 Fair value of loans with 90+ day delinquencies (2) $ 528 N/A $ 31,140 $ 7,144 Number of loans in foreclosure (3) 1 7 49 — Unpaid principal balance of loans in foreclosure $ 536 $ 10,335 $ 33,471 $ — Fair value of loans in foreclosure (3) $ 528 N/A $ 30,789 $ — December 31, 2021 SFR at Redwood SFR at CAFL (1) 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 (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (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 (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent. 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 our consolidated Agency multifamily loans at September 30, 2022 and December 31, 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 449,232 $ 455,168 Fair value of loans $ 427,458 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at September 30, 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 and nine months ended September 30, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net market valuation gains (losses) recorded (1) $ (13,691) $ (487) $ (40,120) $ (3,745) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities

Real Estate Securities	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) September 30, 2022 December 31, 2021 Trading $ 116,933 $ 170,619 Available-for-sale 142,279 206,792 Total Real Estate Securities $ 259,212 $ 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 September 30, 2022 and December 31, 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Senior Interest-only securities (1) $ 28,860 $ 21,787 Total Senior 28,860 21,787 Subordinate RPL securities 31,963 65,140 Multifamily securities 8,021 10,549 Other third-party residential securities 48,089 73,143 Total Subordinate 88,073 148,832 Total Trading Securities $ 116,933 $ 170,619 (1) Includes $25 million and $15 million of Sequoia certificated mortgage servicing rights at September 30, 2022 and December 31, 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at September 30, 2022 and December 31, 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 220,888 235,306 Total Trading Securities $ 220,888 $ 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 and nine months ended September 30, 2022 and 2021. Table 9.4 – Trading Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of securities acquired (1) $ — $ 10,750 $ — $ 28,380 Principal balance of securities sold (1) — 750 12,716 53,561 Net market valuation gains (losses) recorded (2) (12,521) 1,578 (30,019) 24,725 (1) For the three and nine months ended September 30, 2021, excludes $1 million and $3 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 (loss). AFS Securities The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at September 30, 2022 and December 31, 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Subordinate Sequoia securities $ 78,065 $ 127,542 Multifamily securities 13,211 22,166 Other third-party residential securities 51,003 57,084 Total Subordinate 142,279 206,792 Total AFS Securities $ 142,279 $ 206,792 The following table provides the activity of available-for-sale securities during the three and nine months ended September 30, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Fair value of securities acquired $ — $ — $ 10,000 $ 1,600 Fair value of securities sold — — — 4,785 Principal balance of securities called — 11,565 14,486 25,970 Net unrealized (losses) gains on AFS securities (1) (8,731) (2,658) (60,013) 19,552 (1) Net unrealized (losses) gains on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss. We often purchase AFS securities at a discount to their outstanding principal balances. To the extent we purchase an AFS security that has a likelihood of incurring a loss, we do not amortize into income the portion of the purchase discount that we do not expect to collect due to the inherent credit risk of the security. We may also expense a portion of our investment in the security to the extent we believe that principal losses will exceed the purchase discount. We designate any amount of unpaid principal balance that we do not expect to receive and thus do not expect to earn or recover as a credit reserve on the security. Any remaining net unamortized discounts or premiums on the security are amortized into income over time using the effective yield method. At September 30, 2022, we had $10 million of AFS securities with contractual maturities less than five years, $1 million with contractual maturities greater than five years but less than ten years, and the remainder of our AFS securities had contractual maturities greater than ten years. The following table presents the components of carrying value (which equals fair value) of AFS securities at September 30, 2022 and December 31, 2021. Table 9.7 – Carrying Value of AFS Securities September 30, 2022 (In Thousands) Total Principal balance $ 227,715 Credit reserve (30,247) Unamortized discount, net (61,015) Amortized cost 136,453 Gross unrealized gains 19,017 Gross unrealized losses (10,876) CECL allowance (2,315) Carrying Value $ 142,279 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 and nine months ended September 30, 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 Nine Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 30,619 $ 61,303 $ 27,555 $ 76,023 Amortization of net discount — (830) — (10,647) Realized credit recoveries (losses), net 170 — 244 — Acquisitions — — — — Sales, calls, other — — (343) (1,570) Transfers to (release of) credit reserves, net (542) 542 2,791 (2,791) Ending Balance $ 30,247 $ 61,015 $ 30,247 $ 61,015 AFS Securities with Unrealized Losses The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at September 30, 2022 and December 31, 2021. Table 9.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Fair Unrealized Fair Unrealized (In Thousands) September 30, 2022 $ 65,585 $ (10,685) $ 1,409 $ (191) December 31, 2021 6,827 (251) 1,554 (46) At September 30, 2022, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 81 AFS securities, of which 35 were in an unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2021, our consolidated balance sheet included 85 AFS securities, of which four were in an unrealized loss position and one was in a continuous unrealized loss position for 12 consecutive months or longer. Evaluating AFS Securities for Credit Losses Gross unrealized losses on our AFS securities were $11 million at September 30, 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 September 30, 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 c ash flows for such securities, which considers recent security performance and expected future performance of the underlying collateral. At September 30, 2022, our current expected credit loss ("CECL") allowance related to our AFS securities was $2.3 million. AFS securities for which an allowance is recognized have experienced, or are expected to experience, adverse cash flow changes. In determining our estimate of cash flows for AFS securities we may consider factors such as structural credit enhancement, past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, which are informed by prepayment rates, default rates, loss severities, delinquency rates, percentage of non-performing loans, FICO scores at loan origination, year of origination, loan-to-value ratios, and geographic concentrations, as well as general market assessments. Changes in our evaluation of these factors impacted the cash flows expected to be collected at the assessment date and were used to determine if there were credit-related adverse cash flows and if so, the amount of credit-related losses. Significant judgment is used in both our analysis of the expected cash flows for our AFS securities and any determination of security credit losses. The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at September 30, 2022. Table 9.10 – Significant Credit Quality Indicators September 30, 2022 Subordinate Securities Default rate 0.8% Loss severity 20% The following table details the activity related to the allowance for credit losses for AFS securities for the three and nine months ended September 30, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (In Thousands) Beginning balance allowance for credit losses $ 1,771 $ — Additions to allowance for credit losses on securities for which credit losses were not previously recorded 30 1,520 Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 514 795 Allowance on purchased financial assets with credit deterioration — — Reduction to allowance for securities sold during the period — — Reduction to allowance for securities we intend to sell or more likely than not will be required to sell — — Write-offs charged against allowance — — Recoveries of amounts previously written off — — Ending balance of allowance for credit losses $ 2,315 $ 2,315 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 and nine months ended September 30, 2022 and 2021. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Gross realized gains - sales $ — $ — $ — $ 1,507 Gross realized gains - calls — 6,389 1,914 15,484 Gross realized losses - sales — — — — Total Realized Gains on Sales and Calls of AFS Securities, net $ — $ 6,389 $ 1,914 $ 16,991 During the nine months ended September 30, 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 nine months ended September 30, 2022.

Home Equity Investments (HEI)

Home Equity Investments (HEI)	9 Months Ended
	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Home Equity Investments (HEI)	Home Equity Investments (HEI) Home equity investments at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 10.1 – Home Equity Investments (In Thousands) September 30, 2022 December 31, 2021 HEIs at Redwood $ 200,709 $ 33,187 HEIs held at consolidated HEI securitization entity 139,728 159,553 Total Home Equity Investments $ 340,437 $ 192,740 We purchase home equity investment contracts from third party originators under flow purchase agreements. Each HEI provides the owner of such HEI the right to purchase a percentage ownership interest in an associated residential property, and the homeowner's obligations under the HEI are secured by a lien (primarily second liens) on the property created by a deed of trust or a mortgage. Our investments in HEIs allow us to share in both home price appreciation and depreciation of the associated property. At September 30, 2022, we had flow purchase agreements with HEI originators with $149 million of cumulative purchase commitments outstanding. See Note 17 for additional information on these commitments. As of September 30, 2022 , we owned $201 million of HEIs at Redwood and consolidated $140 million of HEIs through the HEI securitization entity. We account for these investments under the fair value option and during the three and nine months ended September 30, 2022, we recorded net market valuation losses of $5 million and losses of $2 million, respectively, related to HEIs owned at Redwood through Investment fair value changes, net on our consolidated statements of income (loss). We consolidate the HEI securitization in accordance with GAAP and have elected to account for it under the CFE election. During the three and nine months ended September 30, 2022, we recorded net market valuation losses of $1 million and gains of $4 million (including $1 million and $3 million of interest expense), respectively, related to our net investment in the HEI securitization entity through Investment fair value changes, net on our consolidated statements of income (loss).

Other Investments

Other Investments	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Other Investments	Other Investments Other investments at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) September 30, 2022 December 31, 2021 Servicer advance investments $ 274,934 $ 350,923 Strategic investments 71,607 35,702 Excess MSRs 40,452 44,231 Mortgage servicing rights 24,796 12,438 Other 973 5,935 Total Other Investments $ 412,762 $ 449,229 Servicer advance investments We and a third-party co-investor, through two partnerships (“SA Buyers”) consolidated by us, purchased the outstanding servicer advances and excess MSRs related to 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 both September 30, 2022 and December 31, 2021, we had cumulatively funded $148 million of total capital to the SA Buyers. See Note 17 for additional detail on these commitments. At September 30, 2022, our servicer advance investments had a carrying value of $275 million and were associated with a portfolio of residential mortgage loans with an unpaid principal balance of $11.68 billion. The outstanding servicer advance receivables associated with this investment were $245 million at September 30, 2022, which were financed with short-term non-recourse securitization debt. See Note 14 for additional detail on this debt. The servicer advance receivables were comprised of the following types of advances at September 30, 2022 and December 31, 2021. Table 11.2 – Components of Servicer Advance Receivables (In Thousands) September 30, 2022 December 31, 2021 Principal and interest advances $ 89,816 $ 94,148 Escrow advances (taxes and insurance advances) 117,971 172,847 Corporate advances 37,394 43,958 Total Servicer Advance Receivables $ 245,181 $ 310,953 We account for our servicer advance investments at fair value and during the three and nine months ended September 30, 2022, we recorded $5 million and $15 million of interest income, respectively, through Other interest income, and recorded a net market valuation loss of $4 million and loss of $10 million, respectively, through Investment fair value changes, net in our consolidated statements of income (loss). Strategic Investments Strategic investments represent investments we made in companies either through our RWT Horizons venture investment platform or separately at a corporate level. At September 30, 2022, we had made a total of 27 investments in companies through RWT Horizons with a total carrying value of $24 million, as well as six corporate-level investments. During the three and nine months ended September 30, 2022, we recognized a net mark-to-market valuation gain of $1 million and $11 million, respectively, on our strategic investments, which was recorded in Investment fair value changes, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2022, we recorded losses of $0.3 million and $0.4 million, respectively, in Other income, net 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 and nine months ended September 30, 2022, we recognized $4 million and $12 million of interest income, respectively, through Other interest income, and recorded net market valuation losses of $0.4 million and $4 million, respectively, through Investment fair value changes, net on our consolidated statements of income (loss). Mortgage Servicing Rights We invest in mortgage servicing rights associated with residential mortgage loans and contract with licensed sub-servicers to perform all servicing functions for these loans. The majority of our investments in MSRs were made through the retention of servicing rights associated with the residential jumbo mortgage loans that we acquired and subsequently sold to third parties. During the three and nine months ended September 30, 2022, we retained zero and $5 million, respectively, of MSRs from sales of residential loans to third parties. We hold our MSR investments at our taxable REIT subsidiaries. At September 30, 2022 and December 31, 2021, our MSRs had a fair value of $25 million and $12 million, respectively, and were associated with loans with an aggregate principal balance of $2.22 billion and $2.12 billion, respectively. During the three and nine months ended September 30, 2022, including net market valuation gains and losses on our MSRs, we recorded net income of $3 million and $13 million, respectively, through Other income on our consolidated statements of income (loss) related to our MSRs.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments September 30, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 24,626 $ 459,000 $ 611 $ 161,500 TBAs 13,568 565,000 2,880 2,440,000 Interest rate futures 26,275 681,500 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 744 87,157 4,633 971,631 Total Assets $ 65,213 $ 1,792,657 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ (23) $ 10,000 $ (1,251) $ 283,100 TBAs (6,545) 255,000 (658) 870,000 Interest rate futures (2) 300 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (212) 58,544 (503) 404,190 Total Liabilities $ (6,782) $ 323,844 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 58,431 $ 2,116,501 $ 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 September 30, 2022, we were party to swaps and swaptions with an aggregate notional amount of $469 million, TBA agreements with an aggregate notional amount of $820 million, and interest rate futures contracts with an aggregate notional amount of $682 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 and nine months ended September 30, 2022, risk management derivatives had net market valuation gains of $76 million and gains of $198 million, respectively. For the three and nine months ended September 30, 2021, risk management derivatives had net market valuation gains of $4 million and gains of $38 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 (loss). Loan Purchase and Interest Rate Lock Commitments Loan purchase commitments ("LPCs") and interest rate lock commitments ("IRLCs") that qualify as derivatives are recorded at their estimated fair values. For the three and nine months ended September 30, 2022, LPCs and IRLCs had net market valuation losses of $3 million and losses of $54 million, respectively, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). For both the three and nine months ended September 30, 2021, LPCs and IRLCs had net market valuation gains of $18 million, that were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). 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 $73 million and $76 million at September 30, 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 September 30, 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 and nine months ended September 30, 2022 and 2021. Table 12.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net interest expense on cash flows hedges $ — $ — $ — $ — Realized net losses reclassified from other comprehensive income (1,040) (1,041) (3,086) (3,086) Total Interest Expense $ (1,040) $ (1,041) $ (3,086) $ (3,086) 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 September 30, 2022, we assessed this risk as remote and did not record an associated specific valuation adjustment. At September 30, 2022, we were in compliance with our derivative counterparty ISDA agreements.

Other Assets and Liabilities

Other Assets and Liabilities	9 Months Ended
	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets and Liabilities	Other Assets and Liabilities Other assets at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) September 30, 2022 December 31, 2021 Accrued interest receivable $ 54,944 $ 47,515 Investment receivable 50,149 82,781 Deferred tax asset 20,867 20,867 Operating lease right-of-use assets 17,126 18,772 Income tax receivables 13,959 22 Fixed assets and leasehold improvements (1) 12,411 9,019 Margin receivable 6,683 7,269 REO 3,683 36,126 Other 14,678 8,746 Total Other Assets $ 194,500 $ 231,117 (1) Fixed assets and leasehold improvements had a basis of $22 million and accumulated depreciation of $9 million at September 30, 2022. Accrued expenses and other liabilities at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) September 30, 2022 December 31, 2021 Payable to non-controlling interests $ 47,487 $ 42,670 Accrued interest payable 46,938 39,297 Margin payable 30,389 24,368 Accrued compensation 23,488 74,636 Operating lease liabilities 19,533 20,960 Guarantee obligations 6,532 7,459 Residential loan and MSR repurchase reserve 5,754 9,306 Accrued operating expenses 4,956 4,377 Current accounts payable 4,722 8,273 Bridge loan holdbacks 3,930 3,109 Other 7,396 11,333 Total Accrued Expenses and Other Liabilities $ 201,125 $ 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 September 30, 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 nine months ended September 30, 2022. Table 13.3 – REO Activity Nine Months Ended September 30, 2022 (In Thousands) Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total Balance at beginning of period $ 13,067 $ 61 $ 2,028 $ 20,970 $ 36,126 Transfers to REO 963 407 2,664 — 4,034 Liquidations (1) (14,271) (505) (2,395) (20,970) (38,141) Changes in fair value, net 974 443 247 — 1,664 Balance at End of Period $ 733 $ 406 $ 2,544 $ — $ 3,683 (1) For the nine months ended September 30, 2022, REO liquidations resulted in $2 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss).

Short-Term Debt

Short-Term Debt	9 Months Ended
	Sep. 30, 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 partially uncommitted) short-term borrowings with several banks and major investment banking firms. At September 30, 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 September 30, 2022 and December 31, 2021. Table 14.1 – Short-Term Debt September 30, 2022 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity (2) Weighted Average Days Until Maturity Facilities Residential loan warehouse 9 $ 748,962 $ 2,850,000 4.83 % 12/2022 - 9/2023 150 Business purpose loan warehouse 4 775,491 1,750,000 5.67 % 3/2023 - 9/2023 289 Real estate securities repo 7 124,435 — 3.50 % 10/2022 - 12/2022 32 Total Short-Term Debt Facilities 20 1,648,888 Servicer advance financing 1 233,104 290,000 4.94 % 11/2023 397 Promissory notes N/A 30,702 N/A 6.58 % N/A N/A Convertible notes, net N/A 197,585 N/A 4.75 % 8/2023 319 Total Short-Term Debt $ 2,110,279 December 31, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Convertible notes, net N/A — Total Short-Term Debt $ 2,177,362 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over 1-month SOFR or 1- or 3-month LIBOR. (2) Promissory notes payable on demand to lender with 90-day notice. Assumed maturity date at September 30, 2022 is December 30, 2022 for this presentation. The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at September 30, 2022 and December 31, 2021. Table 14.2 – Collateral for Short-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 828,192 $ 1,838,797 Business purpose loans 982,745 167,687 Real estate securities On balance sheet 60,457 5,823 Sequoia securitizations (1) 77,470 61,525 Freddie Mac K-Series securitization (1) 32,047 31,657 Total real estate securities owned 169,974 99,005 Restricted cash and other assets 4,116 1,962 Total Collateral for Short-Term Debt Facilities 1,985,027 2,107,451 Cash 15,891 6,480 Restricted cash 18,569 25,420 Servicer advances 274,934 310,953 Total Collateral for Servicer Advance Financing 309,394 342,853 Total Collateral for Short-Term Debt $ 2,294,421 $ 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 and nine months ended September 30, 2022, the average balance of our short-term debt facilities was $1.64 billion and $1.65 billion, respectively. At September 30, 2022 and December 31, 2021, accrued interest payable on our short-term debt facilities was $5 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 September 30, 2022, the accrued interest payable balance on this financing was $0.3 million and the unamortized capitalized commitment costs were $0.1 million. In connection with our acquisition of Riverbend, we assumed $43 million of promissory notes which are payable on demand with a 90-day notice from the lender or which may be repaid by us with a 90-day notice. These unsecured, non-marginable, recourse notes were issued in three separate series with fixed interest rates between 6% and 8%. During the three months ended September 30, 2022, we repaid $12 million of principal of these notes. We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $1 million at September 30, 2022. At both September 30, 2022 and December 31, 2021, we had no outstanding borrowings on this facility. During the three and nine months ended September 30, 2022, business purpose loan warehouse facilities with a borrowing limits of $450 million and $900 million, respectively, were reclassified to short-term debt from long-term debt as the maturity of these facilities became less than one year. During the three months ended September 30, 2022, $199 million principal amount of 4.75% convertible debt and $1 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt as the maturity of the notes was less than one year as of August 2022. Remaining Maturities of Short-Term Debt The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at September 30, 2022. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities September 30, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 262,804 $ 486,158 $ 748,962 Business purpose loans — — 775,491 775,491 Real estate securities 72,233 52,202 — 124,435 Total Secured Short-Term Debt 72,233 315,006 1,261,649 1,648,888 Servicer advance financing — — 233,104 233,104 Promissory notes — 30,702 — 30,702 Convertible notes, net — — 197,585 197,585 Total Short-Term Debt $ 72,233 $ 345,708 $ 1,692,338 $ 2,110,279

Asset-Backed Securities Issued

Asset-Backed Securities Issued	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021, along with other selected information, are summarized in the following table. Table 15.1 – Asset-Backed Securities Issued September 30, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 213,786 $ 3,650,411 $ 3,375,688 $ 1,344,521 $ 412,764 $ 112,380 $ 9,109,550 Interest-only certificates 170 62,311 134,348 13,930 8,075 — 218,834 Market valuation adjustments (16,602) (699,473) (330,549) (109,410) (25,428) (7,629) (1,189,091) ABS Issued, Net $ 197,354 $ 3,013,249 $ 3,179,487 $ 1,249,041 $ 395,411 $ 104,751 $ 8,139,293 Range of weighted average interest rates, by series (3) 2.52% to 3.90% 2.56% to 4.99% 2.34% to 5.93% 3.50% to 4.75% 3.41 % 3.76 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2032 2028-2059 2025 2052 Number of series 20 17 19 3 1 1 December 31, 2021 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 $485 million and $270 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at September 30, 2022 and December 31, 2021, respectively. (2) Includes $100 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 2022 and December 31, 2021, respectively. (3) Certain ABS issued by CAFL, Freddie Mac SLST, and HEI securitization entities are subject to early redemption and interest rate step-ups as described below. During the second quarter of 2022, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest bridge loans (presented within CAFL in Table 15.1 above), which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $215 million (principal balance) of ABS issued to third parties and retained the remaining beneficial ownership interest in the trust. The ABS were issued at a discount and we have elected to account for the ABS issued at amortized cost. At September 30, 2022, the principal balance of the ABS issued was $215 million, and the unamortized debt discount and deferred issuance costs were $7 million in total, for a net carrying value of $208 million. The weighted average stated coupon of the ABS issued was 4.32% at issuance. The ABS issued by the CAFL bridge entity are subject to an optional redemption in May 2024, and beginning in June 2025, the interest rate on the ABS issued increases by 2% through final maturity in May 2029. The ABS issued by this securitization were collateralized by $229 million of bridge loans and $19 million of restricted cash and other assets at September 30, 2022. The securitization is structured with $250 million of total funding capacity and a feature to allow reinvestment of loan payoffs for the first 24 months of the transaction (through May 2024), unless an amortization event occurs prior to the expiration of the 24-month reinvestment period. Amortization trigger events include, among other events, delinquency rates or default rates exceeding specified thresholds for three consecutive periods, or the effective advance rate exceeding a specified threshold. During the third quarter of 2021, we consolidated the assets and liabilities of a securitization entity formed in connection with the securitization of CoreVest bridge loans (presented within CAFL in table 15.1 above), which we determined was a VIE and for which we determined we are the primary beneficiary. At issuance, we sold $270 million (principal balance) of ABS issued to third parties and retained the remaining beneficial ownership interest in the trust. The ABS were issued at a discount and we have elected to account for the ABS issued at amortized cost. At September 30, 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 collateralized by $283 million of bridge loans and $24 million of restricted cash and other assets at September 30, 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 September 30, 2022, the principal balance of the ABS issued was $100 million, and the debt discount and deferred issuance costs totaled $1 million, for a net carrying value of $99 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 September 30, 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 September 30, 2022 and December 31, 2021. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) September 30, 2022 December 31, 2021 Legacy Sequoia $ 223 $ 99 Sequoia 9,003 8,452 CAFL 11,202 11,030 Freddie Mac SLST (1) 4,026 4,630 Freddie Mac K-Series 1,173 1,190 Total Accrued Interest Payable on ABS Issued $ 25,627 $ 25,401 (1) Includes accrued interest payable on ABS issued by a re-securitization trust sponsored by Redwood.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 16.1 – Long-Term Debt September 30, 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 $ 131,316 $ — $ 131,316 N/A 4.21 % 9/2024 CAFL Facility B 102,006 (126) 101,880 N/A 4.21 % 2/2025 Facility C 71,792 (189) 71,603 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 565,028 (976) 564,052 $ 750,000 L + 2.51% N/A Recourse BPL Financing Facility G — — — 500,000 SOFR + 2.25% - 2.50% 9/2024 Total Long-Term Debt Facilities 870,142 (1,291) 868,851 Convertible notes 5.625% convertible senior notes 150,200 (1,484) 148,716 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (2,769) 169,323 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (6,419) 208,581 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (745) 138,755 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,546,934 $ (12,708) $ 1,534,226 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 C 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 307,215 (507) 306,708 $ 400,000 L + 2.75% N/A Recourse BPL Financing Facility E 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility F 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 D (see Table 16.1 above) to increase the borrowing limit from $400 million to $600 million. During the three months ended September 30, 2022, we amended facility D to increase the borrowing limit from $600 million to $750 million. Recourse BPL Financing Facilities During the three months ended September 30, 2022, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable financing for business purpose bridge loan and single-family rental loans (Facility G in Table 16.1 above). At September 30, 2022, there were no borrowings under this facility. During the three months ended September 30, 2022, Facility E was reclassified to short-term debt as the maturity of this facility was less than one year. During the three months ended June 30, 2022, Facility F was reclassified to short-term debt as the maturity of this facility was less than one year. During the three months ended March 31, 2022, we amended the interest rate for Facilities E and F (see Table 16.1 above) to be indexed to a spread over one-month SOFR compared to a LIBOR-indexed spread. Convertible Notes In June 2022, we issued $215 million principal amount of 7.75% convertible senior notes due 2027. These notes require semi-annual interest payments at a fixed annual coupon rate of 7.75% until maturity or conversion, which will be no later than June 15, 2027. After deducting the underwriting discount and offering costs, we received $208 million of net proceeds. Including amortization of deferred debt issuance costs, the effective interest expense yield on these notes was approximately 8.50% per annum. We may elect to settle conversions either entirely in cash or in a combination of cash and shares of common stock. Upon conversion, the conversion value will be paid in cash up to at least the principal amount of the notes being converted. The initial conversion rate of the notes is 95.6823 common shares per $1,000 principal amount of notes (equivalent to a conversion price of $10.45 per common share). During the three months ended September 30, 2022, $199 million principal amount of 4.75% convertible debt and $1 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt as the maturity of the notes was less than one year as of August 2022. The following table below presents the value of loans, securities, and other assets pledged as collateral under our long-term debt at September 30, 2022 and December 31, 2021. Table 16.2 – Collateral for Long-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Collateral Type Bridge loans $ 699,704 $ 554,597 Single-family rental loans — 244,703 Real estate securities Sequoia securitizations (1) 184,363 247,227 CAFL securitizations (1) 240,683 260,405 Total Collateral for Long-Term Debt $ 1,124,750 $ 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 September 30, 2022 and December 31, 2021. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Long-term debt facilities $ 2,685 $ 815 Convertible notes 4.75% convertible senior notes — 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,947 2,474 7.75% convertible senior notes 5,184 — Trust preferred securities and subordinated notes 1,228 581 Total Accrued Interest Payable on Long-Term Debt $ 15,828 $ 11,330

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments At September 30, 2022, we were obligated under ten non-cancelable operating leases with expiration dates through 2031 for $22 million of cumulative lease payments. For the nine-month periods ended September 30, 2022 and 2021 our operating lease expense was $4 million and $3 million, respectively. The following table presents our future lease commitments at September 30, 2022. Table 17.1 – Future Lease Commitments by Year (In Thousands) September 30, 2022 2022 (3 months) $ 1,216 2023 4,956 2024 4,601 2025 3,580 2026 3,420 2027 and thereafter 4,553 Total Lease Commitments 22,326 Less: Imputed interest (2,793) Operating Lease Liabilities $ 19,533 During the nine months ended September 30, 2022, we did not enter into any new office leases. During the three months ended September 30, 2022, we assumed three operating office leases as a result of our acquisition of Riverbend on July 1, 2022. At September 30, 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 September 30, 2022, the weighted-average remaining lease term and weighted-average discount rate for our leases was 5 years and 5.2%, respectively. Commitment to Fund Bridge Loans As of September 30, 2022, we had commitments to fund up to $990 million of additional advances on existing bridge loans. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the borrower and other terms regarding advances that must be met before we fund the commitment. At September 30, 2022, we carried a $3 million contingent liability related to these commitments to fund construction advances. During the three and nine months ended September 30, 2022, we recorded a net market valuation gain of $1 million and a net market valuation loss of $2 million, respectively, related to this liability through Mortgage banking activities, net and Investment fair value changes, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2021, we recorded a net market valuation loss of $0.3 million and a net market valuation gain of $1 million, respectively, related to this liability through Mortgage banking activities, net on our consolidated statements of income (loss). Commitment to Fund Partnerships In 2018, we invested in two partnerships created to acquire and manage certain mortgage servicing related assets. See Note 11 for additional detail on these investments. In connection with 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 At September 30, 2022, we had outstanding flow purchase agreements with multiple third parties, with an aggregate commitment to purchase $350 million of HEIs, $149 million of which commitments remained outstanding. These purchase agreements specify monthly minimum and maximum amounts of HEIs subject to such purchase commitments. We may terminate the purchase agreement and associated purchase commitment relating to $85 million of remaining commitments upon 90 days prior notice. We account for these investments under the fair value option. Se e Note 10 for additional detail on these investments. Commitments to Fund Strategic Investments In the first quarter of 2022, we entered into a $25 million commitment to an investment fund with the mission of providing quality workforce housing opportunities in several California urban communities, including the San Francisco Bay Area. At September 30, 2022, we had funded $15 million of this commitment. This investment is included in Other investments on our consolidated balance sheets. In 2021, we entered into a commitment to fund a $5 million RWT Horizons investment. At September 30, 2022, we had funded $1 million of this commitment. This investment is included in Other investments on our consolidated balance sheets. Riverbend Contingent Consideration As part of the consideration for our acquisition of Riverbend, we may make earnout payments payable in cash, based on generating specified revenues over a threshold amount during the two-year period ending July 1, 2024, up to a maximum potential amount payable of $25.3 million. These contingent earnout payments are classified as a contingent consideration liability on our consolidated balance sheets and carried at fair value. At September 30, 2022, our estimated fair value of this contingent liability was zero. Loss Contingencies — Risk-Sharing During 2015 and 2016, we sold conforming loans to the Agencies with an original unpaid principal balance of $3.19 billion, subject to our risk-sharing arrangements with the Agencies. At September 30, 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 September 30, 2022, we had incurred less than $100 thousand of cumulative losses under these arrangements. For the three and nine months ended September 30, 2022, other income related to these arrangements was $0.3 million and $1 million, respectively. All of the loans in the reference pools subject to these risk-sharing arrangements were originated in 2014 and 2015, and at September 30, 2022, the loans had an unpaid principal balance of $454 million, a weighted average FICO score of 756 (at origination), and LTV ratio of 74% (at origination). At September 30, 2022, $10 million of the loans were 90 or more days delinquent, of which four of these loans with an unpaid principal balance of $1 million were in foreclosure. At September 30, 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 September 30, 2022 and December 31, 2021, assets of such SPEs totaled $30 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. At September 30, 2022 and December 31, 2021, our repurchase reserve associated with our residential loans and MSRs was $6 million and $9 million, respectively, and was recorded in Accrued expenses and other liabilities on our consolidated balance sheets. During the nine months ended September 30, 2022 and 2021, we received seven and eight repurchase requests, respectively, and repurchased one and one loan(s), respectively. During the three and nine months ended September 30, 2022, we recorded a repurchase provision expense of $0.1 million and a reversal of repurchase provision expense of $4 million, respectively, which were recorded in Mortgage banking activities, net on our consolidated statements of income (loss). During the three and nine months ended September 30, 2021, we recorded repurchase provision expense of $0.3 million and $0.6 million, respectively, which were recorded in Mortgage banking activities, net, and Other income on our consolidated statements of income (loss). Loss Contingencies — Litigation, Claims and Demands There is no significant update regarding the litigation matters described in Note 16

Equity

Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Equity	Equity The following table provides a summary of changes to accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2022 and 2021. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ 16,595 $ (74,383) $ 88,251 $ (78,511) Other comprehensive (loss) income (8,731) — (2,658) — Amounts reclassified from other 544 1,040 (6,200) 1,041 Net current-period other comprehensive (loss) income (8,187) 1,040 (8,858) 1,041 Balance at End of Period $ 8,408 $ (73,343) $ 79,393 $ (77,470) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 (60,013) — 19,552 — Amounts reclassified from other 918 3,087 (16,495) 3,087 Net current-period other comprehensive (loss) income (59,095) 3,087 3,057 3,087 Balance at End of Period $ 8,408 $ (73,343) $ 79,393 $ (77,470) The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended September 30, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 544 $ — Gain on sale of AFS securities Realized gains, net — (6,200) $ 544 $ (6,200) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,040 $ 1,041 $ 1,040 $ 1,041 Amount Reclassified From Affected Line Item in the Nine Months Ended September 30, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 2,315 $ (388) Gain on sale of AFS securities Realized gains, net (1,397) (16,107) $ 918 $ (16,495) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 3,087 $ 3,087 $ 3,087 $ 3,087 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 nine months ended September 30, 2022, we issued 5.2 million 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 September 30, 2022. Direct Stock Purchase and Dividend Reinvestment Plan During the nine months ended September 30, 2022, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At September 30, 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 (loss) earnings per common share computations for the three and nine months ended September 30, 2022 and 2021. Table 18.3 – Basic and Diluted Earnings per Common Share Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, except Share Data) 2022 2021 2022 2021 Basic Earnings per Common Share: Net (loss) income attributable to Redwood $ (50,411) $ 88,286 $ (119,462) $ 275,568 Less: Dividends and undistributed earnings allocated to participating securities (1,158) (2,984) (3,445) (8,979) Net (loss) income allocated to common shareholders $ (51,569) $ 85,302 $ (122,907) $ 266,589 Basic weighted average common shares outstanding 116,087,890 112,995,847 118,530,172 112,754,691 Basic (Loss) Earnings per Common Share $ (0.44) $ 0.75 $ (1.04) $ 2.36 Diluted Earnings per Common Share: Net (loss) income attributable to Redwood $ (50,411) $ 88,286 $ (119,462) $ 275,568 Less: Dividends and undistributed earnings allocated to participating securities (1,158) (2,747) (3,445) (8,151) Add back: Interest expense on convertible notes for the period, net of tax — 6,870 — 20,585 Net (loss) income allocated to common shareholders $ (51,569) $ 92,409 $ (122,907) $ 288,002 Weighted average common shares outstanding 116,087,890 112,995,847 118,530,172 112,754,691 Net effect of dilutive equity awards — 292,749 — 253,819 Net effect of assumed convertible notes conversion to common shares — 28,566,875 — 28,566,875 Diluted weighted average common shares outstanding 116,087,890 141,855,471 118,530,172 141,575,385 Diluted (Loss) Earnings per Common Share $ (0.44) $ 0.65 $ (1.04) $ 2.03 We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances. During the three and nine months ended September 30, 2021, 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 and nine months ended September 30, 2022, 49,137,808 and 37,307,705 of common shares, respectively, related to the assumed conversion of our convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three and nine months ended September 30, 2022, the number of outstanding equity awards that were antidilutive totaled 249,178 and 268,737, respectively. For the three and nine months ended September 30, 2021, the number of outstanding equity awards that were antidilutive totaled 22,102 and 18,736, respectively.

Equity Compensation Plans

Equity Compensation Plans	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Equity Compensation Plans	Equity Compensation Plans At September 30, 2022 and December 31, 2021, 5,258,817 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 $35 million at September 30, 2022, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type Nine Months Ended September 30, 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 — 2,513 7,960 — 323 10,796 Performance-based valuation adjustment — — — (3,205) — (3,205) Equity grant forfeitures (5) (448) (101) — — (554) Equity compensation expense (79) (1,567) (10,412) (2,524) (242) (14,824) Unrecognized Compensation Cost at End of Period $ — $ 4,087 $ 23,920 $ 6,508 $ 81 $ 34,596 At September 30, 2022, the weighted average amortization period remaining for all of our equity awards was less than two years. Restricted Stock Awards ("RSAs") At September 30, 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 nine months ended September 30, 2022, there were no RSAs granted, restrictions on 26 RSAs lapsed and those shares were distributed, and 341 RSAs were forfeited. Restricted Stock Units ("RSUs") At September 30, 2022 and December 31, 2021, there were 476,893 and 431,072 RSUs outstanding, respectively. During the nine months ended September 30, 2022, there were 208,717 RSUs granted, 123,869 RSUs distributed, and 39,027 RSUs forfeited. Unvested RSUs at September 30, 2022 vest through 2026. Deferred Stock Units (“DSUs”) At September 30, 2022 and December 31, 2021, there were 4,911,777 and 4,022,088 DSUs outstanding, respectively, of which 2,217,327 and 1,469,903, respectively, had vested. During the nine months ended September 30, 2022, there were 1,214,533 DSUs granted, 316,546 DSUs distributed, and 8,298 DSUs forfeited. Unvested DSUs at September 30, 2022 vest through 2026. Performance Stock Units (“PSUs”) At September 30, 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. During the nine months ended September 30, 2022, for PSUs granted in 2020 and 2021, we decreased the book value total shareholder return estimate for the 2022 performance period, reducing the future equity compensation expense related to these awards by $3 million. 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 September 30, 2022 and December 31, 2021, 505,496 and 569,728 shares had been purchased, respectively, and there remained a negligible amount of uninvested employee contributions in the ESPP at September 30, 2022.

Mortgage Banking Activities, Ne

Mortgage Banking Activities, Net	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021. Table 20.1 – Mortgage Banking Activities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (22,776) $ 27,862 $ (125,012) $ 75,496 Trading securities (2) 148 32 4,249 (342) Risk management derivatives (3) 24,319 3,963 107,573 37,187 Other income (expense), net (4) 467 1,089 5,496 3,305 Total residential mortgage banking activities, net 2,158 32,946 (7,694) 115,646 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) (19,306) 18,461 (84,493) 54,675 Risk management derivatives (3) 24,044 (424) 56,564 930 Bridge loans, at fair value (9) 3,433 2,242 6,702 Other income, net (5) 9,648 8,747 36,214 22,236 Total business purpose mortgage banking activities, net 14,377 30,217 10,527 84,543 Mortgage Banking Activities, Net $ 16,535 $ 63,163 $ 2,833 $ 200,189 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchases, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income, Net

Other Income, Net	9 Months Ended
	Sep. 30, 2022
Other Income and Expenses [Abstract]
Other Income, Net	Other Income, Net The following table presents the components of Other income recorded in our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021. Table 21.1 – Other Income, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 MSR income, net (1) $ 2,890 $ 295 $ 12,569 $ 949 Bridge loan fees 1,489 1,131 3,952 2,735 Risk share income 279 575 1,062 2,318 Other (631) 387 (567) 2,355 Other Income, Net $ 4,027 $ 2,388 $ 17,016 $ 8,357 (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	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021 are presented in the following table. Table 22.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 General and Administrative Expenses Fixed compensation expense (1) $ 18,626 $ 11,285 $ 45,364 $ 34,359 Annual variable compensation expense 3,521 19,844 8,689 51,021 Long-term incentive award expense (2) 4,998 4,915 16,190 14,766 Acquisition-related equity compensation expense (3) — 1,189 — 3,613 Systems and consulting 3,909 2,975 10,796 9,224 Office costs 2,381 2,197 6,489 6,029 Accounting and legal 1,775 1,197 5,026 3,132 Corporate costs 928 964 2,792 2,528 Other 3,969 3,126 11,581 7,165 Total General and Administrative Expenses 40,107 47,692 106,927 131,837 Loan Acquisition Costs Commissions 1,549 1,906 6,279 4,830 Underwriting costs 545 2,351 3,013 5,872 Transfer and holding costs 332 364 1,079 1,226 Total Loan Acquisition Costs 2,426 4,621 10,371 11,928 Other Expenses Amortization of purchase-related intangible assets 3,891 3,873 10,731 11,619 Other 370 150 1,083 485 Total Other Expenses 4,261 4,023 11,814 12,104 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 46,794 $ 56,336 $ 129,112 $ 155,869 (1) Includes $3 million of severance and transition-related expenses for the three and nine months ended September 30, 2022. (2) For the three months ended September 30, 2022 and 2021, long-term incentive award expense included $5 million and $3 million of expense for awards settleable in shares of our common stock, and $0.1 million and $1 million of expense for awards settleable in cash, respectively. For the nine months ended September 30, 2022 and 2021, long-term incentive award expense included $15 million and $10 million of expense for awards settleable in shares of our common stock, and $1 million and $4 million of expense for awards settleable in cash, respectively. (3) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest in 2019. 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 and Cash Settled Deferred Stock Units During the nine months ended September 30, 2022, $2 million of long-term cash-based retention awards were granted to employees that will vest and be paid over a three-year period, subject to continued employment through the vesting periods from 2022 through 2025. At both September 30, 2022 and December 31, 2021, the unamortized compensation cost of long-term cash-based awards was $4 million. During the nine months ended September 30, 2022, there were no cash-settled deferred stock units granted to employees. Cash-settled deferred stock units that were granted in 2020 and 2021 vest over four years through 2025. At September 30, 2022 and December 31, 2021, the unamortized compensation cost of cash-settled deferred stock units was $2 million and $7 million, respectively. The unamortized compensation cost is adjusted for changes in the value of our common stock at the end of each reporting period. Refer to Note 21 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 long-term cash-based awards and cash-settled deferred stock units.

Taxes

Taxes	9 Months Ended
	Sep. 30, 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 other things, the assets it holds, the income it generates, and the composition of its stockholders. For the nine months ended September 30, 2022 and 2021, we recognized a benefit from income taxes of $10 million and a provision for income taxes of $14 million, respectively. The following is a reconciliation of the statutory federal and state tax rates to our effective tax rate at September 30, 2022 and 2021. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate September 30, 2022 September 30, 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 (29.6) % (13.1) % Change in valuation allowance (2.4) % (6.8) % Dividends paid deduction 10.5 % (4.9) % Effective Tax Rate 8.1 % 4.8 %

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021. Table 24.1 – Business Segment Financial Information Three Months Ended September 30, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 9,882 $ 9,082 $ 156,882 $ 1,816 $ 177,662 Interest expense (8,083) (5,971) (111,876) (16,797) (142,727) Net interest income 1,799 3,111 45,006 (14,981) 34,935 Non-interest (loss) income Mortgage banking activities, net 2,158 14,377 — — 16,535 Investment fair value changes, net — — (61,780) 4,083 (57,697) Other income, net — 399 3,906 (278) 4,027 Realized gains, net — — — — — Total non-interest income (loss), net 2,158 14,776 (57,874) 3,805 (37,135) General and administrative expenses (5,735) (18,535) (3,502) (12,335) (40,107) Loan acquisition costs (550) (1,876) — — (2,426) Other expenses — (3,891) (370) — (4,261) Benefit from (provision for) income taxes 1,688 2,559 (5,664) — (1,417) Segment Contribution $ (640) $ (3,856) $ (22,404) $ (23,511) Net (Loss) $ (50,411) Non-cash amortization (expense) income, net $ (185) $ (3,609) $ (3,658) $ (2,843) $ (10,295) Nine Months Ended September 30, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 36,048 $ 22,509 $ 471,932 $ 4,028 $ 534,517 Interest expense (23,316) (12,797) (331,047) (38,832) (405,992) Net interest income 12,732 9,712 140,885 (34,804) 128,525 Non-interest (loss) income Mortgage banking activities, net (7,694) 10,527 — — 2,833 Investment fair value changes, net — — (165,297) 13,508 (151,789) Other income, net — 2,028 15,423 (435) 17,016 Realized gains, net — — 2,581 — 2,581 Total non-interest (loss) income, net (7,694) 12,555 (147,293) 13,073 (129,359) General and administrative expenses (17,918) (40,076) (9,676) (39,257) (106,927) Loan acquisition costs (2,848) (7,523) — — (10,371) Other expenses 74 (10,731) (1,157) — (11,814) Benefit from (provision for) income taxes 8,283 9,009 (6,808) — 10,484 Segment Contribution $ (7,371) $ (27,054) $ (24,049) $ (60,988) Net (Loss) $ (119,462) Non-cash amortization (expense) income, net $ (699) $ (11,563) $ 4,385 $ (6,428) $ (14,305) Three Months Ended September 30, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 14,712 $ 3,967 $ 125,994 $ 1,049 $ 145,722 Interest expense (7,537) (2,013) (84,049) (10,155) (103,754) Net interest income 7,175 1,954 41,945 (9,106) 41,968 Non-interest income Mortgage banking activities, net 32,946 30,217 — — 63,163 Investment fair value changes, net — — 26,324 (247) 26,077 Other income, net — 216 1,842 330 2,388 Realized gains, net — — 6,703 — 6,703 Total non-interest income, net 32,946 30,433 34,869 83 98,331 General and administrative expenses (7,891) (12,017) (4,483) (23,301) (47,692) Loan acquisition costs (2,395) (2,175) (51) — (4,621) Other expenses — (3,873) (150) — (4,023) (Provision for) benefit from income taxes (10,429) (3,485) (1,045) 19,282 4,323 Segment Contribution $ 19,406 $ 10,837 $ 71,085 $ (13,042) Net Income $ 88,286 Non-cash amortization (expense) income, net $ (33) $ (4,224) $ 5,682 $ (1,995) $ (570) Nine Months Ended September 30, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 35,536 $ 9,849 $ 363,751 $ 3,586 $ 412,722 Interest expense (19,903) (5,134) (258,685) (30,649) (314,371) Net interest income 15,633 4,715 105,066 (27,063) 98,351 Non-interest income Mortgage banking activities, net 115,646 84,543 — — 200,189 Investment fair value changes, net — — 121,812 (1,168) 120,644 Other income, net — 494 7,121 742 8,357 Realized gains, net — — 17,803 — 17,803 Total non-interest income (loss), net 115,646 85,037 146,736 (426) 346,993 General and administrative expenses (27,478) (34,567) (10,804) (58,988) (131,837) Loan acquisition costs (5,686) (5,528) (710) (4) (11,928) Other expenses (6) (11,523) (592) 17 (12,104) Provision for income taxes (23,640) (6,988) (2,561) 19,282 (13,907) Segment Contribution $ 74,469 $ 31,146 $ 237,135 $ (67,182) Net Income $ 275,568 Non-cash amortization income (expense), net $ 8,867 $ (16,154) $ 317 $ (5,845) $ (12,815) The following table presents the components of Corporate/Other for the three and nine months ended September 30, 2022 and 2021. Table 24.2 – Components of Corporate/Other Three Months Ended September 30, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,473 $ 343 $ 1,816 $ 1,042 $ 7 $ 1,049 Interest expense (1,486) (15,311) (16,797) (641) (9,514) (10,155) Net interest income (13) (14,968) (14,981) 401 (9,507) (9,106) Non-interest income Investment fair value changes, net (329) 4,412 4,083 (247) — (247) Other income — (278) (278) — 330 330 Total non-interest income, net (329) 4,134 3,805 (247) 330 83 General and administrative expenses — (12,335) (12,335) — (23,301) (23,301) Loan acquisition costs — — — — — — Other expenses — — — — — — Provision for income taxes — — — — 19,282 19,282 Total $ (342) $ (23,169) $ (23,511) $ 154 $ (13,196) $ (13,042) Nine Months Ended September 30, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 3,593 $ 435 $ 4,028 $ 3,559 $ 27 $ 3,586 Interest expense (3,154) (35,678) (38,832) (2,271) (28,378) (30,649) Net interest income 439 (35,243) (34,804) 1,288 (28,351) (27,063) Non-interest income Investment fair value changes, net (1,379) 14,887 13,508 (1,162) (6) (1,168) Other income — (435) (435) — 742 742 Total non-interest income, net (1,379) 14,452 13,073 (1,162) 736 (426) General and administrative expenses — (39,257) (39,257) — (58,988) (58,988) Loan acquisition costs — — — — (4) (4) Other expenses — — — — 17 17 Provision for income taxes — — — — 19,282 19,282 Total $ (940) $ (60,048) $ (60,988) $ 126 $ (67,308) $ (67,182) (1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs. The following table presents supplemental information by segment at September 30, 2022 and December 31, 2021. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total September 30, 2022 Residential loans $ 676,458 $ — $ 4,877,938 $ 198,160 $ 5,752,556 Business purpose loans — 337,238 4,919,980 — 5,257,218 Consolidated Agency multifamily loans — — 427,458 — 427,458 Real estate securities — — 259,212 — 259,212 Home equity investments — — 340,437 — 340,437 Other investments — — 341,155 71,607 412,762 Goodwill — 23,373 — — 23,373 Intangible assets — 44,130 — — 44,130 Total assets 738,301 473,748 11,301,836 632,062 13,145,947 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Consolidated Agency multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Home equity investments — — 192,740 — 192,740 Other investments — — 413,527 35,702 449,229 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe consolidated financial statements presented herein are at September 30, 2022 and December 31, 2021, and for the three and nine months ended September 30, 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 September 30, 2022 and results of operations for all periods presented. The results of operations for the three and nine months ended September 30, 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 Consolidated Agency multifamily loans, 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 Home equity investments, at fair value on our consolidated balance sheets. The asset-backed securities (“ABS”) issued to third parties by these entities are shown under ABS issued. In our consolidated statements of income, we record interest income on the loans owned at these entities and interest expense on the ABS issued by these entities as well as fair value changes, other income and expenses associated with these entities' activities. See Note 15 for further discussion on ABS issued. We also consolidate two partnerships ("Servicing Investment" entities) through which we have invested in servicing-related assets. We maintain an 80% ownership interest in each entity and have determined that we are the primary beneficiary of these partnerships.
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 In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 was issued to (1) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the accounting and disclosure requirements of ASU 2022-03 and we plan to adopt this new guidance by the required date. We do not anticipate that this update will have a material impact on our financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the current expected credit loss ("CECL") model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method," which will expand companies' abilities to hedge the benchmark interest rate risk of portfolios of financial assets (or beneficial interests) in a fair value hedge. The ASU expands the use of the portfolio layer method (previously referred to as the last-of-layer method) to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. The ASU also permits both prepayable and non-prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. The ASU further requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We plan to adopt this new guidance by the required date and do not anticipate that this update will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This new guidance clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact the adoption of this standard would have on our consolidated financial statements. Through September 30, 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 September 30, 2022, our primary LIBOR exposure included the following: $689 million of repo or warehouse debt, $37 million of interest rate swaps, $757 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, which also have fallback provisions for benchmark replacement. 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 a result of legislation that was passed in the state of New York, our trust preferred securities and subordinated notes are expected to convert to SOFR upon the cessation of LIBOR.
Balance Sheet Netting	Balance Sheet Netting Certain of our derivatives and short-term debt are subject to master netting arrangements or similar agreements. Under GAAP, in certain circumstances we may elect to present certain financial assets, liabilities and related collateral subject to master netting arrangements in a net position on our consolidated balance sheets. However, we do not report any of these financial assets or liabilities on a net basis, and instead present them on a gross basis on our consolidated balance sheets.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Assets Acquired and Liabilities Assumed	Through September 30, 2022, there were no significant changes to our purchase price allocations, which are summarized in the following table. Table 2.1 - Purchase Price Allocation (In Thousands) Riverbend Acquisition Date July 1, 2022 Purchase price: Cash $ 44,126 Provisional consideration payable 477 Contingent consideration, at fair value — Total consideration $ 44,603 Allocated to: Business purpose loans, at fair value $ 59,748 Other investments 2,443 Cash and cash equivalents 3,490 Other assets 13,306 Goodwill 23,373 Intangible assets 13,300 Total assets acquired 115,660 Short-term debt, net 67,423 Accrued expenses and other liabilities 3,634 Total liabilities assumed 71,057 Total net assets acquired $ 44,603
Schedule of Finite-Lived Intangible Assets	The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at September 30, 2022. Table 2.2 – Intangible Assets – Activity Intangible Assets at Acquisition Accumulated Amortization at September 30, 2022 Carrying Value at September 30, 2022 Weighted Average Amortization Period (in years) (Dollars in Thousands) Borrower network $ 56,300 $ (19,537) $ 36,763 7 Broker network 18,100 (12,972) 5,128 5 Non-compete agreements 11,400 (9,567) 1,833 3 Tradenames 4,400 (3,994) 406 3 Developed technology 1,800 (1,800) — 2 Loan administration fees on existing loan assets 2,600 (2,600) — 1 Total $ 94,600 $ (50,470) $ 44,130 6
Finite-lived Intangible Assets Amortization Expense	Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year (In Thousands) September 30, 2022 2022 (3 months) $ 3,238 2023 12,430 2024 9,413 2025 8,426 2026 6,695 2027 and thereafter 3,928 Total Future Intangible Asset Amortization $ 44,130
Schedule of Goodwill	Table 2.4 – Goodwill - Activity (In Thousands) Riverbend Beginning Balance $ — Goodwill recognized from acquisition 23,373 Impairment — Ending Balance $ 23,373
Pro Forma Information	The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, as if the acquisition of Riverbend occurred as of January 1, 2021. These pro forma amounts have been adjusted to include the amortization of intangible assets for all periods. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2021 and should not be taken as indicative of our future consolidated results of operations. During the period from July 1, 2022 to September 30, 2022, Riverbend had net interest income of $1 million, non-interest income of $0.5 million, and a net loss of $1 million, which included intangible asset amortization expense of 0.6 million. Table 2.5 – Unaudited Pro Forma Financial Information Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Supplementary pro forma information: Net interest income $ 34,935 $ 43,174 $ 132,475 $ 100,570 Non-interest (loss) income (37,135) 102,436 (121,614) 355,456 Net (loss) income (50,411) 89,923 (117,090) 278,134

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Offsetting of Financial Assets, Liabilities, and Collateral	The following table presents financial assets and liabilities that are subject to master netting arrangements or similar agreements categorized by financial instrument, together with corresponding financial instruments and corresponding collateral received or pledged at September 30, 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 September 30, 2022 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 24,626 $ — $ 24,626 $ (23) $ (7,638) $ 16,965 TBAs 13,568 — 13,568 (529) (12,077) 962 Futures 26,275 — 26,275 (2) (10,675) 15,598 Total Assets $ 64,469 $ — $ 64,469 $ (554) $ (30,390) $ 33,525 Liabilities (2) Interest rate agreements $ (23) $ — $ (23) $ 23 $ — $ — TBAs (6,545) — (6,545) 529 1,280 (4,736) Futures (2) — (2) 2 — — Loan warehouse debt (224,370) — (224,370) 224,370 — — Total Liabilities $ (230,940) $ — $ (230,940) $ 224,924 $ 1,280 $ (4,736) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Consolidated Balance Sheet Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet Gross Amounts Not Offset in Consolidated (1) Net Amount December 31, 2021 (In Thousands) Financial Instruments Cash Collateral (Received) Pledged Assets (2) Interest rate agreements $ 18,929 $ — $ 18,929 $ (1,251) $ (16,046) $ 1,632 TBAs 2,880 — 2,880 (633) (704) 1,543 Futures 25 — 25 (25) — — Total Assets $ 21,834 $ — $ 21,834 $ (1,909) $ (16,750) $ 3,175 Liabilities (2) Interest rate agreements $ (1,251) $ — $ (1,251) $ 1,251 $ — $ — TBAs $ (658) $ — $ (658) $ 633 $ 15 $ (10) Futures (905) — (905) 25 880 — Loan warehouse debt (572,720) — (572,720) 572,720 — — Total Liabilities $ (575,534) $ — $ (575,534) $ 574,629 $ 895 $ (10) (1) Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, we have pledged excess cash collateral or financial assets to a counterparty (which, in certain circumstances, may be a clearinghouse) that exceed the financial liabilities subject to a master netting arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, these excess amounts are excluded from the table; they are separately reported in our consolidated balance sheets as assets or liabilities, respectively.

Principles of Consolidation (Ta

Principles of Consolidation (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 198,161 $ 3,237,170 $ — $ 1,482,964 $ — $ — $ — $ 4,918,295 Business purpose loans, held-for-investment — — 3,531,229 — — — — 3,531,229 Consolidated Agency multifamily loans — — — — 427,458 — — 427,458 Home equity investments 139,728 139,728 Other investments — — — — — 307,723 — 307,723 Cash and cash equivalents — — — — — 15,923 — 15,923 Restricted cash 92 78 15,889 — — 18,569 3,540 38,168 Accrued interest receivable 226 11,295 17,497 5,247 1,299 720 — 36,284 Other assets 407 — 24,084 2,544 — 7,270 50 34,355 Total Assets $ 198,886 $ 3,248,543 $ 3,588,699 $ 1,490,755 $ 428,757 $ 350,205 $ 143,318 $ 9,449,163 Short-term debt $ — $ — $ — $ — $ — $ 233,104 $ — $ 233,104 Accrued interest payable 224 9,003 11,202 3,630 1,173 348 — 25,580 Accrued expenses and other liabilities (58) 80 1,903 — — 24,223 24,354 50,502 Asset-backed securities issued 197,354 3,013,249 3,179,487 1,249,041 395,411 — 104,751 8,139,293 Total Liabilities $ 197,520 $ 3,022,332 $ 3,192,592 $ 1,252,671 $ 396,584 $ 257,675 $ 129,105 $ 8,448,479 Value of our investments in VIEs (1) $ 1,214 $ 223,920 $ 393,015 $ 236,467 $ 32,047 $ 92,530 $ 14,213 $ 993,406 Number of VIEs 20 17 19 3 1 3 1 64 December 31, 2021 Legacy Sequoia CAFL (1) Freddie Mac SLST (1) Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Residential loans, held-for-investment $ 230,455 $ 3,628,465 $ — $ 1,888,230 $ — $ — $ — $ 5,747,150 Business purpose loans, held-for-investment — — 3,766,316 — — — — 3,766,316 Consolidated Agency multifamily loans — — — — 473,514 — — 473,514 Other investments — — — — — 384,754 159,553 544,307 Cash and cash equivalents — — — — — 6,481 — 6,481 Restricted cash 148 5 15,221 — — 25,420 5,292 46,086 Accrued interest receivable 210 10,885 15,737 5,792 1,315 1,462 — 35,401 Other assets 61 — 32,510 2,028 — 7,177 50 41,826 Total Assets $ 230,874 $ 3,639,355 $ 3,829,784 $ 1,896,050 $ 474,829 $ 425,294 $ 164,895 $ 10,661,081 Short-term debt $ — $ — $ — $ — $ — $ 294,447 $ — $ 294,447 Accrued interest payable 99 8,452 11,030 4,055 1,190 192 — 25,018 Accrued expenses and other liabilities — 5 1,171 — — 28,115 17,034 46,325 Asset-backed securities issued 227,881 3,383,048 3,474,898 1,588,463 441,857 — 137,410 9,253,557 Total Liabilities $ 227,980 $ 3,391,505 $ 3,487,099 $ 1,592,518 $ 443,047 $ 322,754 $ 154,444 $ 9,619,347 Value of our investments in VIEs (1) $ 2,634 $ 245,417 $ 339,419 $ 301,795 $ 31,657 $ 102,540 $ 10,451 $ 1,033,913 Number of VIEs 20 16 16 3 1 3 1 60 (1) Value of our investments in VIEs, as presented in this table, 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 two bridge loan securitizations for which we did not make the CFE election. As of September 30, 2022 and December 31, 2021, the fair value of our interests in the CAFL SFR securitizations were $314 million and $302 million, respectively, and the remaining values were associated with our interests in the CAFL Bridge securitizations, for which the ABS issued is carried at amortized historical cost. Freddie Mac SLST includes securitizations we account for under the CFE election and also includes ABS issued in relation to a resecuritization of the securities we own in the consolidated Freddie Mac SLST VIEs, that we account for at amortized historical cost. As of September 30, 2022 and December 31, 2021, the fair value of our interests in the Freddie Mac SLST securitizations accounted for under the CFE election were $335 million and $445 million, respectively, with the difference from the tables above representing ABS issued and carried at amortized historical cost. The following table presents income (loss) from these VIEs for the three and nine months ended September 30, 2022 and 2021. Table 4.2 – Income (Loss) from Consolidated VIEs Three Months Ended September 30, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,475 $ 31,587 $ 61,439 $ 16,098 $ 4,762 $ 7,800 $ — $ 123,161 Interest expense (1,486) (27,541) (44,804) (12,829) (4,377) (2,606) — (93,643) Net interest income (11) 4,046 16,635 3,269 385 5,194 — 29,518 Non-interest income Investment fair value changes, net (328) (10,936) (4,527) (41,892) 316 (3,286) (584) (61,237) Other income — — 286 — — — — 286 Total non-interest income, net (328) (10,936) (4,241) (41,892) 316 (3,286) (584) (60,951) General and administrative expenses — — — — — (55) — (55) Other expenses — — — — — (372) — (372) Income (loss) from Consolidated VIEs $ (339) $ (6,890) $ 12,394 $ (38,623) $ 701 $ 1,481 $ (584) $ (31,860) Nine Months Ended September 30, 2022 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 3,595 $ 95,608 $ 195,381 $ 49,851 $ 14,247 $ 23,287 $ — $ 381,969 Interest expense (3,154) (84,041) (145,207) (40,286) (13,099) (6,110) — (291,897) Net interest income 441 11,567 50,174 9,565 1,148 17,177 — 90,072 Non-interest income Investment fair value changes, net (1,378) (20,644) (23,972) (74,796) 390 (11,259) 4,028 (127,631) Other income — — 631 — — — — 631 Total non-interest income, net (1,378) (20,644) (23,341) (74,796) 390 (11,259) 4,028 (127,000) General and administrative expenses — — — — — (130) — (130) Other expenses — — — — — (1,158) — (1,158) Income (loss) from Consolidated VIEs $ (937) $ (9,077) $ 26,833 $ (65,231) $ 1,538 $ 4,630 $ 4,028 $ (38,216) Three Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 1,042 $ 18,867 $ 48,937 $ 18,707 $ 4,846 $ 3,905 $ — $ 96,304 Interest expense (641) (15,368) (37,489) (15,774) (4,460) (1,018) — (74,750) Net interest income 401 3,499 11,448 2,933 386 2,887 — 21,554 Non-interest income Investment fair value changes, net (247) 3,314 2,943 13,849 554 (2,080) 47 18,380 Other income — — 10 — — — — 10 Total non-interest income, net (247) 3,314 2,953 13,849 554 (2,080) 47 18,390 General and administrative expenses — — — — — (60) — (60) Other expenses — — — — — (149) — (149) Income (loss) from Consolidated VIEs $ 154 $ 6,813 $ 14,401 $ 16,782 $ 940 $ 598 $ 47 $ 39,735 Nine Months Ended September 30, 2021 Legacy Sequoia CAFL Freddie Mac SLST Freddie Mac Servicing Investment HEI Total (Dollars in Thousands) Interest income $ 3,559 $ 48,842 $ 152,659 $ 58,372 $ 14,492 $ 12,168 $ — $ 290,092 Interest expense (2,271) (38,848) (118,543) (49,756) (13,294) (3,414) — (226,126) Net interest income 1,288 9,994 34,116 8,616 1,198 8,754 — 63,966 Non-interest income Investment fair value changes, net (1,162) 13,118 6,354 54,282 11,330 (5,646) 47 78,323 Other income — — 10 — — — — 10 Total non-interest income, net (1,162) 13,118 6,364 54,282 11,330 (5,646) 47 78,333 General and administrative expenses — — — — — (150) — (150) Other expenses — — — — — (591) — (591) Income (loss) from Consolidated VIEs $ 126 $ 23,112 $ 40,480 $ 62,898 $ 12,528 $ 2,367 $ 47 $ 141,558
Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents information related to securitization transactions that occurred during the three and nine months ended September 30, 2022 and 2021. Table 4.3 – Securitization Activity Related to Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans transferred $ — $ — $ — $ 1,231,803 Trading securities retained, at fair value — — — 7,774 AFS securities retained, at fair value — — — 1,600
Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table summarizes the cash flows during the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Proceeds from new transfers $ — $ — $ — $ 1,266,063 MSR fees received 737 1,095 2,365 4,038 Funding of compensating interest, net (11) 54 (41) (116) Cash flows received on retained securities 3,096 16,724 20,380 42,117
Assumptions Related to Assets Retained from Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents the key weighted-average assumptions used to value securities retained at the date of securitization for securitizations completed during the three and nine months ended September 30, 2022 and 2021. Table 4.5 – Assumptions Related to Assets Retained from Unconsolidated VIEs Sponsored by Redwood Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A N/A N/A Discount rates N/A N/A N/A N/A Credit loss assumptions N/A N/A N/A N/A Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 At Date of Securitization Senior IO Securities Subordinate Securities Senior IO Securities Subordinate Securities Prepayment rates N/A N/A 11 11 % Discount rates N/A N/A 15 % 6 % Credit loss assumptions N/A N/A 0.23 % 0.23 %
Unconsolidated Variable Interest Entity's Sponsored by Redwood	The following table presents additional information at September 30, 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) September 30, 2022 December 31, 2021 On-balance sheet assets, at fair value: Interest-only, senior and subordinate securities, classified as trading $ 28,511 $ 18,214 Subordinate securities, classified as AFS 78,065 127,542 Mortgage servicing rights 11,915 6,450 Maximum loss exposure (1) $ 118,491 $ 152,206 Assets transferred: Principal balance of loans outstanding $ 4,146,817 $ 4,959,234 Principal balance of loans 30+ days delinquent 21,803 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 September 30, 2022 and December 31, 2021. Table 4.7 – Key Assumptions and Sensitivity Analysis for Assets Retained from Unconsolidated VIEs Sponsored by Redwood September 30, 2022 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at September 30, 2022 $ 11,915 $ 28,511 $ 78,065 Expected life (in years) (2) 7 7 16 Prepayment speed assumption (annual CPR) (2) 8 % 11 % 8 % Decrease in fair value from: 10% adverse change $ 334 $ 942 $ 570 25% adverse change 810 2,291 1,132 Discount rate assumption (2) 11 % 12 % 8 % Decrease in fair value from: 100 basis point increase $ 441 $ 1,001 $ 7,714 200 basis point increase 852 1,889 14,345 Credit loss assumption (2) N/A 0.04 % 0.04 % Decrease in fair value from: 10% higher losses N/A N/A $ 190 25% higher losses N/A N/A 254 December 31, 2021 MSRs Senior Securities (1) Subordinate Securities (Dollars in Thousands) Fair value at December 31, 2021 $ 6,450 $ 18,214 $ 127,542 Expected life (in years) (2) 3 4 5 Prepayment speed assumption (annual CPR) (2) 29 % 23 % 32 % Decrease in fair value from: 10% adverse change $ 447 $ 1,130 $ 531 25% adverse change 1,020 2,596 1,440 Discount rate assumption (2) 12 % 16 % 5 % Decrease in fair value from: 100 basis point increase $ 152 $ 426 $ 4,801 200 basis point increase 297 829 9,139 Credit loss assumption (2) N/A 0.35 % 0.35 % Decrease in fair value from: 10% higher losses N/A N/A $ 1,528 25% higher losses N/A N/A 3,819 (1) Senior securities included $29 million and $18 million of interest-only securities at September 30, 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 September 30, 2022 and December 31, 2021, grouped by asset type. Table 4.8 – Third-Party Sponsored VIE Summary (In Thousands) September 30, 2022 December 31, 2021 Mortgage-Backed Securities Senior $ 348 $ 3,572 Subordinate 152,288 228,083 Total Mortgage-Backed Securities 152,636 231,655 Excess MSR 7,662 10,400 Total Investments in Third-Party Sponsored VIEs $ 160,298 $ 242,055

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 5.1 – Carrying Values and Fair Values of Assets and Liabilities September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair (In Thousands) Assets Residential loans, held-for-sale, at fair value $ 834,262 $ 834,262 $ 1,845,248 $ 1,845,248 Residential loans, held-for-investment, at fair value 4,918,294 4,918,294 5,747,150 5,747,150 Business purpose loans, held-for-sale, at fair value 337,238 337,238 358,309 358,309 Business purpose loans, held-for-investment, at fair value 4,919,980 4,919,980 4,432,680 4,432,680 Consolidated Agency multifamily loans, at fair value 427,458 427,458 473,514 473,514 Real estate securities, at fair value 259,212 259,212 377,411 377,411 Servicer advance investments (1) 274,934 274,934 350,923 350,923 MSRs (1) 24,796 24,796 12,438 12,438 Excess MSRs (1) 40,452 40,452 44,231 44,231 HEIs (1) 340,437 340,437 192,740 192,740 Other investments (1) 11,174 11,174 12,663 12,663 Cash and cash equivalents 297,092 297,092 450,485 450,485 Restricted cash 71,996 71,996 80,999 80,999 Derivative assets 65,213 65,213 26,467 26,467 REO (2) 3,683 4,105 36,126 39,272 Margin receivable (2) 6,683 6,683 7,269 7,269 Liabilities Short-term debt (3) $ 1,912,694 $ 1,912,694 $ 2,177,362 $ 2,177,362 Margin payable (4) 30,389 30,389 24,368 24,368 Guarantee obligations (4) 6,532 5,237 7,459 7,133 HEI securitization non-controlling interest 24,355 24,355 17,035 17,035 Derivative liabilities 6,782 6,782 3,317 3,317 ABS issued, net At fair value 7,564,312 7,564,312 8,843,147 8,843,147 At amortized cost 574,981 541,773 410,410 410,471 Other long-term debt, net (5) 868,851 858,810 988,483 989,570 Convertible notes, net (5) 724,205 651,888 513,629 537,300 Trust preferred securities and subordinated notes, net (5) 138,755 76,725 138,721 97,650 (1) These investments are included in Other investments on our consolidated balance sheets. (2) These assets are included in Other assets on our consolidated balance sheets. (3) Short-term debt excludes short-term convertible notes, which are included below under "Convertible notes, net." (4) These liabilities are included in Accrued expenses and other liabilities on our consolidated balance sheets. (5) These liabilities are primarily included in Long-term debt, net on our consolidated balance sheets. Convertible notes, net also includes convertible notes classified as Short-term debt. See Note 14 for more information on Short-term debt.
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the assets and liabilities that are reported at fair value on our consolidated balance sheets on a recurring basis at September 30, 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 September 30, 2022 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 5,752,524 $ — $ — $ 5,752,524 Business purpose loans 5,257,218 — — 5,257,218 Consolidated Agency multifamily loans 427,458 — — 427,458 Real estate securities 259,212 — — 259,212 Servicer advance investments 274,934 — — 274,934 MSRs 24,796 — — 24,796 Excess MSRs 40,452 — — 40,452 HEIs 340,437 — — 340,437 Other investments 11,174 — — 11,174 Derivative assets 65,213 39,843 24,626 744 Liabilities HEI securitization non-controlling interest $ 24,355 $ — $ — $ 24,355 Derivative liabilities 6,782 6,547 23 212 ABS issued 7,564,312 — — 7,564,312 December 31, 2021 Carrying Fair Value Measurements Using (In Thousands) Level 1 Level 2 Level 3 Assets Residential loans $ 7,592,398 $ — $ — $ 7,592,398 Business purpose loans 4,790,989 — — 4,790,989 Consolidated Agency multifamily loans 473,514 — — 473,514 Real estate securities 377,411 — — 377,411 Servicer advance investments 350,923 — — 350,923 MSRs 12,438 — — 12,438 Excess MSRs 44,231 — — 44,231 HEIs 192,740 — — 192,740 Other investments 17,574 — — 17,574 Derivative assets 26,467 2,906 18,928 4,633 FHLBC stock 10 — 10 — 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 nine months ended September 30, 2022. Table 5.3 – Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets Residential Loans Business Purpose Consolidated Agency Multifamily Loans Trading Securities AFS 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 3,585,882 181,814 — 5,006 10,000 — — 176,439 8,293 Originations — 2,291,192 — — — — — — — Sales (3,702,359) (414,998) — (27,471) — — — — (3,044) Principal paydowns (734,577) (1,086,983) (5,936) (1,202) (25,381) (65,772) — (35,187) (137) Gains (losses) in net income (loss), net (985,958) (503,832) (40,120) (30,019) 12,560 (10,217) (3,779) 6,445 9,336 Unrealized losses in OCI, net — — — — (61,692) — — — — Other settlements, net (1) (2,862) (964) — — — — — — (3,579) Ending balance - $ 5,752,524 $ 5,257,218 $ 427,458 $ 116,933 $ 142,279 $ 274,934 $ 40,452 $ 340,437 $ 35,970 Liabilities Derivatives (2) HEI Securitization Non-Controlling Interest ABS (In Thousands) Beginning balance - December 31, 2021 $ 4,130 $ 17,035 $ 8,843,147 Acquisitions — — 1,205,289 Principal paydowns — — (1,242,859) Gains (losses) in net income (loss), net (53,962) 7,320 (1,241,265) Other settlements, net (1) 50,364 — — Ending balance - September 30, 2022 $ 532 $ 24,355 $ 7,564,312 (1) Other settlements, net, for residential and business purpose loans, represents the transfer of loans to REO, for derivatives, represents the transfer of the fair value of loan purchase and interest rate lock commitments at the time loans are acquired to the basis of residential and single-family rental business purpose loans, and for MSRs and other investments, primarily represents an investment that was exchanged into a new instrument that is no longer measured at fair value on a recurring basis. (2) For the purpose of this presentation, derivative assets and liabilities, which consist of loan purchase commitments and interest rate lock commitments, are presented on a net basis.
Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held and Included in Net Income	The following table presents the portion of fair value gains or losses included in our consolidated statements of income that were attributable to Level 3 assets and liabilities recorded at fair value on a recurring basis and held at September 30, 2022 and 2021. Gains or losses incurred on assets or liabilities sold, matured, called, or fully written down during the three and nine months ended September 30, 2022 and 2021 are not included in this presentation. Table 5.4 – Portion of Net Fair Value Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held at September 30, 2022 and 2021 Included in Net Income (Loss) Included in Net Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Assets Residential loans at Redwood $ (28,762) $ 6,553 $ (42,952) $ 9,371 Business purpose loans (10,967) 18,810 (39,019) 19,829 Net investments in consolidated Sequoia entities (1) (11,264) 2,885 (22,467) 11,779 Net investments in consolidated Freddie Mac SLST entities (1) (41,969) 13,781 (75,043) 54,006 Net investments in consolidated Freddie Mac K-Series entities (1) 316 555 390 11,330 Net investments in consolidated CAFL SFR entities (1) (6,585) 2,943 (24,365) 5,500 Net investment in consolidated HEI securitization entity (1) (1,652) 47 11,348 129 Trading securities (12,668) 1,547 (34,104) 3,824 Servicer advance investments (3,905) (2,079) (10,218) (3,179) MSRs 1,653 (235) 9,118 (49) Excess MSRs (351) (803) (3,779) (5,233) HEIs at Redwood (4,903) (41) (2,272) 21 Loan purchase and interest rate lock commitments 723 9,021 744 9,261 Liabilities HEI securitization non-controlling interest $ 1,068 $ (83) $ (7,320) $ (83) Loan purchase commitments (212) (2,570) (212) (2,550) (1) Represents the portion of net fair value gains or losses included in our consolidated statements of income (loss) related to securitized loans, securitized HEIs, and the associated ABS issued at our consolidated securitization entities held at September 30, 2022 and 2021, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under CFE election, excluding REO.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis	The following table presents information on assets recorded at fair value on a non-recurring basis at September 30, 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 September 30, 2022. Table 5.5 – Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis at September 30, 2022 Gain (Loss) for September 30, 2022 Carrying Fair Value Measurements Using Three Months Ended Nine Months Ended (In Thousands) Level 1 Level 2 Level 3 September 30, 2022 September 30, 2022 Assets Strategic investments 17,350 — — 17,350 (25) 10,000
Market Valuation Gains and Losses, Net	The following table presents the net market valuation gains and losses recorded in each line item of our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021. Table 5.6 – Market Valuation Gains and Losses, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Mortgage Banking Activities, Net Residential loans held-for-sale, at fair value $ (20,060) $ 9,045 $ (71,776) $ 57,145 Residential loan purchase commitments (2,716) 18,817 (53,236) 18,351 Single-family rental loans held-for-sale, at fair value (19,325) 19,205 (83,827) 54,675 Single-family rental loan interest rate lock commitments 19 (744) (666) — Bridge loans (9) 3,433 2,242 6,702 Trading securities (1) 148 32 4,249 (342) Risk management derivatives, net 48,363 3,539 164,137 38,117 Total mortgage banking activities, net (2) $ 6,420 $ 53,327 $ (38,877) $ 174,648 Investment Fair Value Changes, Net Residential loans held-for-sale, at fair value (called Sequoia loans) $ (6,614) $ 816 $ (18,876) $ 2,423 Bridge loans held-for-investment 2,482 900 (9,220) 4,142 Trading securities (12,668) 1,546 (34,268) 25,067 Servicer advance investments (3,905) (2,079) (10,217) (3,179) Excess MSRs (351) (803) (3,779) (5,233) Net investments in Legacy Sequoia entities (3) (328) (247) (1,378) (1,162) Net investments in Sequoia entities (3) (10,936) 3,314 (20,644) 13,118 Net investments in Freddie Mac SLST entities (3) (41,892) 13,849 (74,796) 54,282 Net investment in Freddie Mac K-Series entity (3) 316 554 390 11,330 Net investments in CAFL SFR entities (3) (6,585) 2,943 (24,365) 6,354 Net investment in HEI securitization entity (3) (584) 47 4,028 47 HEIs at Redwood (4,774) 5,622 (1,986) 13,017 Other investments 1,445 (385) 12,028 50 Risk management derivatives, net 27,241 — 33,609 — Credit (losses) recoveries on AFS securities (544) — (2,315) 388 Total investment fair value changes, net $ (57,697) $ 26,077 $ (151,789) $ 120,644 Other Income MSRs $ 1,236 $ (989) $ 8,031 $ (3,236) Other (852) — (852) — Total other income (4) $ 384 $ (989) $ 7,179 $ (3,236) Total Market Valuation Gains (Losses), Net $ (50,893) $ 78,415 $ (183,487) $ 292,056 (1) Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the market risks associated with our residential mortgage banking operations. (2) Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases, and other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, 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 September 30, 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 $ 718,347 Whole loan spread to swap rate 201 - 400 bps 202 bps Called loan dollar price $ 92 - $ 92 $ 92 Jumbo loans committed to sell 115,883 Whole loan committed sales price $ 96 - $ 102 $ 98 Loans held by Legacy Sequoia (2) 198,160 Liability price N/A N/A Loans held by Sequoia (2) 3,237,170 Liability price N/A N/A Loans held by Freddie Mac SLST (2) 1,482,964 Liability price N/A N/A Business purpose loans: Single-family rental loans 281,105 Senior credit spread 210 - 210 bps 210 bps Subordinate credit spread 275 - 1,025 bps 458 bps Senior credit support 36 - 36 % 36 % IO discount rate 8 - 9 % 8 % Prepayment rate (annual CPR) 3 - 3 % 3 % Whole loan dollar price $ 84 - $ 99 $ 86 Single-family rental loans held by CAFL (2) 3,018,994 Liability price N/A N/A Bridge loans 1,957,119 Whole loan discount rate 5 - 15 % 9 % Senior credit spread 285 - 285 bps 285 bps Subordinate credit spread 345 - 1,200 % 680 % Senior credit support 43 - 43 % 43 % Prepayment rate (annual CPR) — - — % — % Multifamily loans held by Freddie Mac K-Series (2) 427,458 Liability price N/A N/A Trading and AFS securities 259,212 Discount rate 5 - 18 % 10 % Prepayment rate (annual CPR) 6 - 65 % 12 % Default rate — - 12 % 0.4 % Loss severity — - 50 % 25 % CRT dollar price $ 73 - $ 93 $ 85 Servicer advance investments 274,934 Discount rate 2 - 5 % 4 % Prepayment rate (annual CPR) 14 - 30 % 14 % Expected remaining life (3) 5 - 5 yrs 5 yrs Mortgage servicing income — - 18 bps 7 bps MSRs 24,796 Discount rate 11 - 69 % 11 % Prepayment rate (annual CPR) 4 - 28 % 8 % Per loan annual cost to service $ 93 - $ 93 $ 93 Table 5.7 – Fair Value Methodology for Level 3 Financial Instruments (continued) September 30, 2022 Fair Input Values (Dollars in Thousands, except Input Values) Unobservable Input Range Weighted Average (1) Assets (continued) Excess MSRs 40,452 Discount rate 13 - 19 % 18 % Prepayment rate (annual CPR) 10 - 100 % 18 % Excess mortgage servicing income 8 - 19 bps 11 bps HEIs 200,709 Discount rate 10 - 10 % 10 % Prepayment rate (annual CPR) 1 - 23 % 16 % Home price appreciation (7) - 4 % 3 % HEIs held by HEI securitization entity 139,728 Liability price N/A N/A N/A Residential loan purchase commitments, net 531 Whole loan spread to swap rate 201 - 201 bps 201 bps Pull-through rate 26 - 100 % 78 % Committed sales price $ 99 - $ 102 $ 100 Liabilities ABS issued (2) : At consolidated Sequoia entities 3,210,603 Discount rate 4 - 18 % 6 % Prepayment rate (annual CPR) 5 - 24 % 13 % Default rate — - 33 % 1 % Loss severity 25 - 50 % 32 % At consolidated CAFL SFR entities (4) 2,703,223 Discount rate 0.3 - 16 % 6 % Prepayment rate (annual CPR) — - 3 % 0.2 % Default rate 4 - 21 % 6 % Loss severity 30 - 40 % 30 % At consolidated Freddie Mac SLST entities 1,150,323 Discount rate 5 - 8 % 6 % Prepayment rate (annual CPR) 6 - 8 % 6 % Default rate 13 - 14 % 14 % Loss severity 35 - 35 % 35 % At consolidated Freddie Mac K-Series entities (4) 395,411 Discount rate 3 - 9 % 5 % At consolidated HEI securitization entity (4) 104,751 Discount rate 9 - 15 % 10 % Prepayment rate (annual CPR) 20 - 20 % 20 % Home price appreciation (7) - 4 % 3 % (1) The weighted average input values for all loan types are based on unpaid principal balance. The weighted average input values for all other assets and liabilities are based on relative fair value. (2) The fair value of the loans and HEIs held by consolidated entities is based on the fair value of the ABS issued by these entities and the securities and other investments we own in those entities, which we determined were more readily observable in accordance with accounting guidance for collateralized financing entities. At September 30, 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 $224 million, $314 million, $335 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)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 834,262 $ — $ — $ — $ 834,262 Held-for-investment at fair value — 198,160 3,237,170 1,482,964 4,918,294 Total Residential Loans $ 834,262 $ 198,160 $ 3,237,170 $ 1,482,964 $ 5,752,556 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 September 30, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 281,105 — $ 56,133 $ — $ 337,238 Held-for-investment at fair value — 3,018,994 1,388,750 512,236 4,919,980 Total Business Purpose Loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 $ 5,257,218 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 SFR loans at September 30, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% having original maturities of 30 years. The outstanding bridge loans held-for-investment at September 30, 2022 were first-lien, interest-only loans with original maturities of six At September 30, 2022, we had commitments to fund bridge loans of $990 million. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 30, 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 $ 99,281 $ 470,425 $ 392,620 $ 208,938 Principal balance of loans acquired (1) — 59,977 2,463 35,713 Principal balance of loans sold to third parties 37,202 48,279 — 253 Fair value of loans transferred (2) 266,181 77,362 332,670 276,354 Mortgage banking activities income (loss) recorded (4) (19,325) (110) 19,205 3,691 Investment fair value changes recorded (5) — (679) — 900 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 865,253 $ 1,424,604 $ 957,935 $ 557,327 Principal balance of loans acquired (1) 100,349 81,983 2,463 35,713 Principal balance of loans sold to third parties 368,704 48,279 — 9,484 Fair value of loans transferred (2) 561,218 465,966 799,375 276,354 Fair value of loans transferred from HFI to HFS (3) — — 44,922 N/A Mortgage banking activities income (loss) recorded (4) (83,827) 1,129 54,675 5,212 Investment fair value changes recorded (5) — (6,747) — 4,142 (1) Bridge at Redwood for the three and nine months ended September 30, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For SFR at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations. For Bridge at Redwood, represents the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and nine months ended September 30, 2022, we recorded loan origination fee income of $10 million and $36 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (108,980) $ 1,906 $ (34,803) $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (419,182) $ 50 $ (96,934) $ — The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2022 SFR at Redwood SFR at CAFL (1) Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 202 1,142 1,585 1,994 Unpaid principal balance $ 317,556 $ 3,316,706 $ 1,452,180 $ 510,839 Fair value of loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 Weighted average coupon 5.14 % 5.22 % 8.06 % 8.04 % Weighted average remaining loan term (years) 15 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 279,846 N/A $ 702,899 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 699,704 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 15 51 47 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 31,296 $ 33,822 $ 7,063 Fair value of loans with 90+ day delinquencies (2) $ 528 N/A $ 31,140 $ 7,144 Number of loans in foreclosure (3) 1 7 49 — Unpaid principal balance of loans in foreclosure $ 536 $ 10,335 $ 33,471 $ — Fair value of loans in foreclosure (3) $ 528 N/A $ 30,789 $ — December 31, 2021 SFR at Redwood SFR at CAFL (1) 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 (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (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 (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent.
Characteristics of Residential Loans Held-For-Sale	The following table summarizes the characteristics of residential loans held-for-sale at September 30, 2022 and December 31, 2021. Table 6.2 – Characteristics of Residential Loans Held-for-Sale (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 1,054 2,196 Unpaid principal balance $ 874,412 $ 1,813,865 Fair value of loans $ 834,262 $ 1,845,282 Market value of loans pledged as collateral under short-term borrowing agreements $ 828,192 $ 1,838,797 Weighted average coupon 4.99 % 3.27 % Delinquency information Number of loans with 90+ day delinquencies 1 3 Unpaid principal balance of loans with 90+ day delinquencies $ 209 $ 2,923 Fair value of loans with 90+ day delinquencies $ 170 $ 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 and nine months ended September 30, 2022 and 2021. Table 6.3 – Activity of Residential Loans Held-for-Sale Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of loans acquired (1) $ 336,698 $ 3,167,186 $ 3,597,339 $ 9,747,867 Principal balance of loans sold 662,302 2,360,862 3,727,993 6,787,490 Principal balance of loans transferred to HFI — 448,878 687,192 1,623,000 Net market valuation gains (losses) recorded (2) (26,674) 9,861 (90,652) 59,568 (1) For the three and nine months ended September 30, 2022, includes zero and $102 million of loans acquired through calls of zero and three seasoned Sequoia securitizations, respectively. (2) Net market valuation gains (losses) on residential loans held-for-sale are recorded primarily through Mortgage banking activities, net on our consolidated statements of income (loss).
Characteristics of Residential Loans Held-for-Investment	The following tables summarize the characteristics of the residential loans owned at consolidated Sequoia and Freddie Mac SLST entities at September 30, 2022 and December 31, 2021. Table 6.4 – Characteristics of Residential Loans Held-for-Investment September 30, 2022 Legacy Freddie Mac (Dollars in Thousands) Sequoia Sequoia SLST Number of loans 1,372 4,666 11,054 Unpaid principal balance $ 218,298 $ 3,902,938 $ 1,753,301 Fair value of loans $ 198,160 $ 3,237,170 $ 1,482,964 Weighted average coupon 3.23 % 3.25 % 4.50 % Delinquency information Number of loans with 90+ day delinquencies (1) 33 13 1,295 Unpaid principal balance of loans with 90+ day delinquencies $ 5,532 $ 11,404 $ 223,260 Fair value of loans with 90+ day delinquencies (2) N/A N/A N/A Number of loans in foreclosure 16 6 332 Unpaid principal balance of loans in foreclosure $ 1,852 $ 5,928 $ 56,755 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	Table 6.5 – Activity of Residential Loans Held-for-Investment at Consolidated Entities Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ — N/A N/A $ 464,189 N/A Net market valuation gains (losses) recorded 5,182 (202,825) (104,040) (2,580) (11,663) (13,836) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 1,669,683 N/A Net market valuation gains (losses) recorded 12,286 (685,042) (224,543) 9,896 (27,076) 5,177 (1) Represents the transfer of loans from held-for-sale to held-for-investment associated with Sequoia securitizations.

Business Purpose Loans (Tables)

Business Purpose Loans (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 6.1 – Classifications and Carrying Values of Residential Loans September 30, 2022 Legacy Freddie Mac (In Thousands) Redwood Sequoia Sequoia SLST Total Held-for-sale at fair value $ 834,262 $ — $ — $ — $ 834,262 Held-for-investment at fair value — 198,160 3,237,170 1,482,964 4,918,294 Total Residential Loans $ 834,262 $ 198,160 $ 3,237,170 $ 1,482,964 $ 5,752,556 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 September 30, 2022 Single-Family Rental Bridge (In Thousands) Redwood CAFL Redwood CAFL Total Held-for-sale at fair value $ 281,105 — $ 56,133 $ — $ 337,238 Held-for-investment at fair value — 3,018,994 1,388,750 512,236 4,919,980 Total Business Purpose Loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 $ 5,257,218 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 SFR loans at September 30, 2022 were first-lien, fixed-rate loans with original maturities of five, seven, or ten years, with 2% having original maturities of 30 years. The outstanding bridge loans held-for-investment at September 30, 2022 were first-lien, interest-only loans with original maturities of six At September 30, 2022, we had commitments to fund bridge loans of $990 million. See Note 17 for additional information on these commitments. The following table provides the activity of business purpose loans at Redwood during the three and nine months ended September 30, 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 $ 99,281 $ 470,425 $ 392,620 $ 208,938 Principal balance of loans acquired (1) — 59,977 2,463 35,713 Principal balance of loans sold to third parties 37,202 48,279 — 253 Fair value of loans transferred (2) 266,181 77,362 332,670 276,354 Mortgage banking activities income (loss) recorded (4) (19,325) (110) 19,205 3,691 Investment fair value changes recorded (5) — (679) — 900 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 (In Thousands) SFR at Redwood Bridge at Redwood SFR at Redwood Bridge at Redwood Principal balance of loans originated $ 865,253 $ 1,424,604 $ 957,935 $ 557,327 Principal balance of loans acquired (1) 100,349 81,983 2,463 35,713 Principal balance of loans sold to third parties 368,704 48,279 — 9,484 Fair value of loans transferred (2) 561,218 465,966 799,375 276,354 Fair value of loans transferred from HFI to HFS (3) — — 44,922 N/A Mortgage banking activities income (loss) recorded (4) (83,827) 1,129 54,675 5,212 Investment fair value changes recorded (5) — (6,747) — 4,142 (1) Bridge at Redwood for the three and nine months ended September 30, 2022, includes $60 million of loans acquired as part of the Riverbend acquisition. (2) For SFR at Redwood, represents the transfer of loans from held-for-sale to held-for-investment associated with CAFL SFR securitizations. For Bridge at Redwood, represents the transfer of bridge loans from "Bridge at Redwood" to "Bridge at CAFL" resulting from their securitization. (3) Represents the transfer of single-family rental loans from held-for-investment to held-for-sale associated with the call of a consolidated CAFL securitization during the second quarter of 2021. (4) Represents net market valuation changes from the time a loan is originated to when it is sold or transferred to our investment portfolio. Additionally, for the three and nine months ended September 30, 2022, we recorded loan origination fee income of $10 million and $36 million, respectively, through Mortgage banking activities, net on our consolidated statements of income (loss). (5) Represents net market valuation changes for loans classified as held-for-investment and associated interest-only strip liabilities. Table 7.3 – Activity of Business Purpose Loans Held-for-Investment at CAFL Three Months Ended Three Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (108,980) $ 1,906 $ (34,803) $ — Nine Months Ended Nine Months Ended (In Thousands) SFR at Bridge at CAFL SFR at Bridge at CAFL Net market valuation gains (losses) recorded $ (419,182) $ 50 $ (96,934) $ — The following tables summarize the characteristics of the business purpose loans owned at Redwood and at consolidated CAFL entities at September 30, 2022 and December 31, 2021. Table 7.4 – Characteristics of Business Purpose Loans September 30, 2022 SFR at Redwood SFR at CAFL (1) Bridge at Redwood Bridge at CAFL (Dollars in Thousands) Number of loans 202 1,142 1,585 1,994 Unpaid principal balance $ 317,556 $ 3,316,706 $ 1,452,180 $ 510,839 Fair value of loans $ 281,105 $ 3,018,994 $ 1,444,883 $ 512,236 Weighted average coupon 5.14 % 5.22 % 8.06 % 8.04 % Weighted average remaining loan term (years) 15 6 2 1 Market value of loans pledged as collateral under short-term debt facilities $ 279,846 N/A $ 702,899 N/A Market value of loans pledged as collateral under long-term debt facilities $ — N/A $ 699,704 N/A Delinquency information Number of loans with 90+ day delinquencies (2) 1 15 51 47 Unpaid principal balance of loans with 90+ day delinquencies $ 536 $ 31,296 $ 33,822 $ 7,063 Fair value of loans with 90+ day delinquencies (2) $ 528 N/A $ 31,140 $ 7,144 Number of loans in foreclosure (3) 1 7 49 — Unpaid principal balance of loans in foreclosure $ 536 $ 10,335 $ 33,471 $ — Fair value of loans in foreclosure (3) $ 528 N/A $ 30,789 $ — December 31, 2021 SFR at Redwood SFR at CAFL (1) 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 (2) 6 18 31 — Unpaid principal balance of loans with 90+ day delinquencies $ 5,384 $ 41,998 $ 18,032 $ — Fair value of loans with 90+ day delinquencies (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 (3) $ 4,305 N/A $ 14,257 $ — Footnotes to Table 7.4 (1) The fair value of the loans held by consolidated CAFL entities was based on the fair value of the ABS issued by these entities, including securities we own, which we determined were more readily observable, in accordance with accounting guidance for collateralized financing entities. (2) The number of loans 90-or-more days delinquent includes loans in foreclosure. (3) May include loans that are less than 90 days delinquent.

Consolidated Agency Multifami_2

Consolidated Agency Multifamily Loans (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Schedule of Multifamily Loans	The following table summarizes the characteristics of our consolidated Agency multifamily loans at September 30, 2022 and December 31, 2021. Table 8.1 – Characteristics of Consolidated Agency Multifamily Loans (Dollars in Thousands) September 30, 2022 December 31, 2021 Number of loans 28 28 Unpaid principal balance $ 449,232 $ 455,168 Fair value of loans $ 427,458 $ 473,514 Weighted average coupon 4.25 % 4.25 % Weighted average remaining loan term (years) 3 4 Delinquency information Number of loans with 90+ day delinquencies — — Number of loans in foreclosure — — The outstanding consolidated Agency multifamily loans held-for-investment at the consolidated Freddie Mac K-Series entity at September 30, 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 and nine months ended September 30, 2022 and 2021. Table 8.2 – Activity of Consolidated Agency Multifamily Loans Held-for-Investment Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net market valuation gains (losses) recorded (1) $ (13,691) $ (487) $ (40,120) $ (3,745) (1) Net market valuation gains (losses) on multifamily loans held-for-investment are recorded through Investment fair value changes, net on our consolidated statements of income (loss). For loans held at our consolidated Freddie Mac K-Series entity, market value changes are based on the estimated fair value of the associated ABS issued, including securities we own, pursuant to collateralized financing entity guidelines. The net impact to our income statement associated with our economic investment in these securitization entities is presented in Table 4.2 .

Real Estate Securities (Tables)

Real Estate Securities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 9.1 – Fair Values of Real Estate Securities by Type (In Thousands) September 30, 2022 December 31, 2021 Trading $ 116,933 $ 170,619 Available-for-sale 142,279 206,792 Total Real Estate Securities $ 259,212 $ 377,411
Trading Securities by Collateral Type	The following table presents the fair value of trading securities by position and collateral type at September 30, 2022 and December 31, 2021. Table 9.2 – Fair Value of Trading Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Senior Interest-only securities (1) $ 28,860 $ 21,787 Total Senior 28,860 21,787 Subordinate RPL securities 31,963 65,140 Multifamily securities 8,021 10,549 Other third-party residential securities 48,089 73,143 Total Subordinate 88,073 148,832 Total Trading Securities $ 116,933 $ 170,619 (1) Includes $25 million and $15 million of Sequoia certificated mortgage servicing rights at September 30, 2022 and December 31, 2021, respectively. The following table presents the unpaid principal balance of trading securities by position and collateral type at September 30, 2022 and December 31, 2021. Table 9.3 – Unpaid Principal Balance of Trading Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Senior (1) $ — $ — Subordinate 220,888 235,306 Total Trading Securities $ 220,888 $ 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 and nine months ended September 30, 2022 and 2021. Table 9.4 – Trading Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Principal balance of securities acquired (1) $ — $ 10,750 $ — $ 28,380 Principal balance of securities sold (1) — 750 12,716 53,561 Net market valuation gains (losses) recorded (2) (12,521) 1,578 (30,019) 24,725 (1) For the three and nine months ended September 30, 2021, excludes $1 million and $3 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 (loss).
Available-for-Sale Securities by Collateral Type	The following table presents the fair value of our available-for-sale ("AFS") securities by position and collateral type at September 30, 2022 and December 31, 2021. Table 9.5 – Fair Value of Available-for-Sale Securities by Position (In Thousands) September 30, 2022 December 31, 2021 Subordinate Sequoia securities $ 78,065 $ 127,542 Multifamily securities 13,211 22,166 Other third-party residential securities 51,003 57,084 Total Subordinate 142,279 206,792 Total AFS Securities $ 142,279 $ 206,792 The following table provides the activity of available-for-sale securities during the three and nine months ended September 30, 2022 and 2021. Table 9.6 – Available-for-Sale Securities Activity Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Fair value of securities acquired $ — $ — $ 10,000 $ 1,600 Fair value of securities sold — — — 4,785 Principal balance of securities called — 11,565 14,486 25,970 Net unrealized (losses) gains on AFS securities (1) (8,731) (2,658) (60,013) 19,552 (1) Net unrealized (losses) gains on AFS securities are recorded on our consolidated balance sheets through Accumulated other comprehensive loss.
Carrying Value of Residential Available for Sale Securities	The following table presents the components of carrying value (which equals fair value) of AFS securities at September 30, 2022 and December 31, 2021. Table 9.7 – Carrying Value of AFS Securities September 30, 2022 (In Thousands) Total Principal balance $ 227,715 Credit reserve (30,247) Unamortized discount, net (61,015) Amortized cost 136,453 Gross unrealized gains 19,017 Gross unrealized losses (10,876) CECL allowance (2,315) Carrying Value $ 142,279 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 and nine months ended September 30, 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 Nine Months Ended Credit Unamortized Credit Unamortized (In Thousands) Beginning balance $ 30,619 $ 61,303 $ 27,555 $ 76,023 Amortization of net discount — (830) — (10,647) Realized credit recoveries (losses), net 170 — 244 — Acquisitions — — — — Sales, calls, other — — (343) (1,570) Transfers to (release of) credit reserves, net (542) 542 2,791 (2,791) Ending Balance $ 30,247 $ 61,015 $ 30,247 $ 61,015
Components of Fair Value of Available for Sale Securities by Holding Periods	The following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at September 30, 2022 and December 31, 2021. Table 9.9 – AFS Securities in Gross Unrealized Loss Position by Holding Periods Less Than 12 Consecutive Months 12 Consecutive Months or Longer Fair Unrealized Fair Unrealized (In Thousands) September 30, 2022 $ 65,585 $ (10,685) $ 1,409 $ (191) December 31, 2021 6,827 (251) 1,554 (46)
Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss	The table below summarizes the weighted average of the significant credit quality indicators we used for the credit loss allowance on our AFS securities at September 30, 2022. Table 9.10 – Significant Credit Quality Indicators September 30, 2022 Subordinate Securities Default rate 0.8% Loss severity 20%
Activity of Allowance for Credit Losses for Available-for-sale Securities	The following table details the activity related to the allowance for credit losses for AFS securities for the three and nine months ended September 30, 2022. Table 9.11 – Rollforward of Allowance for Credit Losses Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (In Thousands) Beginning balance allowance for credit losses $ 1,771 $ — Additions to allowance for credit losses on securities for which credit losses were not previously recorded 30 1,520 Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period 514 795 Allowance on purchased financial assets with credit deterioration — — Reduction to allowance for securities sold during the period — — Reduction to allowance for securities we intend to sell or more likely than not will be required to sell — — Write-offs charged against allowance — — Recoveries of amounts previously written off — — Ending balance of allowance for credit losses $ 2,315 $ 2,315
Gross Realized Gains and Losses on Available for Sale Securities	The following table presents the gross realized gains and losses on sales and calls of AFS securities for the three and nine months ended September 30, 2022 and 2021. Table 9.12 – Gross Realized Gains and Losses on AFS Securities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Gross realized gains - sales $ — $ — $ — $ 1,507 Gross realized gains - calls — 6,389 1,914 15,484 Gross realized losses - sales — — — — Total Realized Gains on Sales and Calls of AFS Securities, net $ — $ 6,389 $ 1,914 $ 16,991

Home Equity Investments (HEI) (

Home Equity Investments (HEI) (Tables)	9 Months Ended
	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Schedule Of Home Equity Investments	Home equity investments at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 10.1 – Home Equity Investments (In Thousands) September 30, 2022 December 31, 2021 HEIs at Redwood $ 200,709 $ 33,187 HEIs held at consolidated HEI securitization entity 139,728 159,553 Total Home Equity Investments $ 340,437 $ 192,740

Other Investments (Tables)

Other Investments (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Summary of Other Investments	Other investments at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 11.1 – Components of Other Investments (In Thousands) September 30, 2022 December 31, 2021 Servicer advance investments $ 274,934 $ 350,923 Strategic investments 71,607 35,702 Excess MSRs 40,452 44,231 Mortgage servicing rights 24,796 12,438 Other 973 5,935 Total Other Investments $ 412,762 $ 449,229
Components of Servicer Advance Investments	The servicer advance receivables were comprised of the following types of advances at September 30, 2022 and December 31, 2021. Table 11.2 – Components of Servicer Advance Receivables (In Thousands) September 30, 2022 December 31, 2021 Principal and interest advances $ 89,816 $ 94,148 Escrow advances (taxes and insurance advances) 117,971 172,847 Corporate advances 37,394 43,958 Total Servicer Advance Receivables $ 245,181 $ 310,953

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 12.1 – Fair Value and Notional Amount of Derivative Financial Instruments September 30, 2022 December 31, 2021 Fair Notional Fair Notional (In Thousands) Assets - Risk Management Derivatives Interest rate swaps $ 24,626 $ 459,000 $ 611 $ 161,500 TBAs 13,568 565,000 2,880 2,440,000 Interest rate futures 26,275 681,500 25 9,000 Swaptions — — 18,318 1,660,000 Assets - Other Derivatives Loan purchase and interest rate lock commitments 744 87,157 4,633 971,631 Total Assets $ 65,213 $ 1,792,657 $ 26,467 $ 5,242,131 Liabilities - Risk Management Derivatives Interest rate swaps $ (23) $ 10,000 $ (1,251) $ 283,100 TBAs (6,545) 255,000 (658) 870,000 Interest rate futures (2) 300 (905) 62,500 Liabilities - Other Derivatives Loan purchase and interest rate lock commitments (212) 58,544 (503) 404,190 Total Liabilities $ (6,782) $ 323,844 $ (3,317) $ 1,619,790 Total Derivative Financial Instruments, Net $ 58,431 $ 2,116,501 $ 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 and nine months ended September 30, 2022 and 2021. Table 12.2 – Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Net interest expense on cash flows hedges $ — $ — $ — $ — Realized net losses reclassified from other comprehensive income (1,040) (1,041) (3,086) (3,086) Total Interest Expense $ (1,040) $ (1,041) $ (3,086) $ (3,086)

Other Assets and Liabilities (T

Other Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Components of Other Assets	Other assets at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 13.1 – Components of Other Assets (In Thousands) September 30, 2022 December 31, 2021 Accrued interest receivable $ 54,944 $ 47,515 Investment receivable 50,149 82,781 Deferred tax asset 20,867 20,867 Operating lease right-of-use assets 17,126 18,772 Income tax receivables 13,959 22 Fixed assets and leasehold improvements (1) 12,411 9,019 Margin receivable 6,683 7,269 REO 3,683 36,126 Other 14,678 8,746 Total Other Assets $ 194,500 $ 231,117
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities at September 30, 2022 and December 31, 2021 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities (In Thousands) September 30, 2022 December 31, 2021 Payable to non-controlling interests $ 47,487 $ 42,670 Accrued interest payable 46,938 39,297 Margin payable 30,389 24,368 Accrued compensation 23,488 74,636 Operating lease liabilities 19,533 20,960 Guarantee obligations 6,532 7,459 Residential loan and MSR repurchase reserve 5,754 9,306 Accrued operating expenses 4,956 4,377 Current accounts payable 4,722 8,273 Bridge loan holdbacks 3,930 3,109 Other 7,396 11,333 Total Accrued Expenses and Other Liabilities $ 201,125 $ 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 nine months ended September 30, 2022. Table 13.3 – REO Activity Nine Months Ended September 30, 2022 (In Thousands) Bridge Legacy Sequoia Freddie Mac SLST SFR at CAFL Total Balance at beginning of period $ 13,067 $ 61 $ 2,028 $ 20,970 $ 36,126 Transfers to REO 963 407 2,664 — 4,034 Liquidations (1) (14,271) (505) (2,395) (20,970) (38,141) Changes in fair value, net 974 443 247 — 1,664 Balance at End of Period $ 733 $ 406 $ 2,544 $ — $ 3,683 (1) For the nine months ended September 30, 2022, REO liquidations resulted in $2 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss).

Short-Term Debt (Tables)

Short-Term Debt (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 14.1 – Short-Term Debt September 30, 2022 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity (2) Weighted Average Days Until Maturity Facilities Residential loan warehouse 9 $ 748,962 $ 2,850,000 4.83 % 12/2022 - 9/2023 150 Business purpose loan warehouse 4 775,491 1,750,000 5.67 % 3/2023 - 9/2023 289 Real estate securities repo 7 124,435 — 3.50 % 10/2022 - 12/2022 32 Total Short-Term Debt Facilities 20 1,648,888 Servicer advance financing 1 233,104 290,000 4.94 % 11/2023 397 Promissory notes N/A 30,702 N/A 6.58 % N/A N/A Convertible notes, net N/A 197,585 N/A 4.75 % 8/2023 319 Total Short-Term Debt $ 2,110,279 December 31, 2021 (Dollars in Thousands) Number of Facilities Outstanding Balance Limit Weighted Average Interest Rate (1) Maturity Weighted Average Days Until Maturity Facilities Residential loan warehouse 7 $ 1,669,344 $ 2,900,000 1.87 % 1/2022-12/2022 153 Business purpose loan warehouse 2 138,746 350,000 3.34 % 3/2022-7/2022 105 Real estate securities repo 4 74,825 — 1.13 % 1/2022-3/2022 33 Total Short-Term Debt Facilities 13 1,882,915 Servicer advance financing 1 294,447 350,000 1.90 % 11/2022 306 Convertible notes, net N/A — Total Short-Term Debt $ 2,177,362 (1) Borrowings under our facilities generally are uncommitted and charged interest based on a specified margin over 1-month SOFR or 1- or 3-month LIBOR.
Collateral for Short-Term Debt Facilities	The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at September 30, 2022 and December 31, 2021. Table 14.2 – Collateral for Short-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Collateral Type Held-for-sale residential loans $ 828,192 $ 1,838,797 Business purpose loans 982,745 167,687 Real estate securities On balance sheet 60,457 5,823 Sequoia securitizations (1) 77,470 61,525 Freddie Mac K-Series securitization (1) 32,047 31,657 Total real estate securities owned 169,974 99,005 Restricted cash and other assets 4,116 1,962 Total Collateral for Short-Term Debt Facilities 1,985,027 2,107,451 Cash 15,891 6,480 Restricted cash 18,569 25,420 Servicer advances 274,934 310,953 Total Collateral for Servicer Advance Financing 309,394 342,853 Total Collateral for Short-Term Debt $ 2,294,421 $ 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 September 30, 2022. Table 14.3 – Short-Term Debt by Collateral Type and Remaining Maturities September 30, 2022 (In Thousands) Within 30 days 31 to 90 days Over 90 days Total Collateral Type Held-for-sale residential loans $ — $ 262,804 $ 486,158 $ 748,962 Business purpose loans — — 775,491 775,491 Real estate securities 72,233 52,202 — 124,435 Total Secured Short-Term Debt 72,233 315,006 1,261,649 1,648,888 Servicer advance financing — — 233,104 233,104 Promissory notes — 30,702 — 30,702 Convertible notes, net — — 197,585 197,585 Total Short-Term Debt $ 72,233 $ 345,708 $ 1,692,338 $ 2,110,279

Asset-Backed Securities Issued

Asset-Backed Securities Issued (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Asset-Backed Securities Issued	The carrying values of ABS issued by our consolidated securitization entities at September 30, 2022 and December 31, 2021, along with other selected information, are summarized in the following table. Table 15.1 – Asset-Backed Securities Issued September 30, 2022 Legacy Sequoia CAFL (1) Freddie Mac SLST (2) Freddie Mac HEI Total (Dollars in Thousands) Certificates with principal balance $ 213,786 $ 3,650,411 $ 3,375,688 $ 1,344,521 $ 412,764 $ 112,380 $ 9,109,550 Interest-only certificates 170 62,311 134,348 13,930 8,075 — 218,834 Market valuation adjustments (16,602) (699,473) (330,549) (109,410) (25,428) (7,629) (1,189,091) ABS Issued, Net $ 197,354 $ 3,013,249 $ 3,179,487 $ 1,249,041 $ 395,411 $ 104,751 $ 8,139,293 Range of weighted average interest rates, by series (3) 2.52% to 3.90% 2.56% to 4.99% 2.34% to 5.93% 3.50% to 4.75% 3.41 % 3.76 % Stated maturities (3) 2024 - 2036 2047-2052 2027-2032 2028-2059 2025 2052 Number of series 20 17 19 3 1 1 December 31, 2021 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 $485 million and $270 million (principal balance) of ABS issued by two CAFL bridge securitization trusts sponsored by Redwood and accounted for at amortized cost at September 30, 2022 and December 31, 2021, respectively. (2) Includes $100 million and $145 million (principal balance) of ABS issued by a re-securitization trust sponsored by Redwood and accounted for at amortized cost at September 30, 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 September 30, 2022 and December 31, 2021. Interest due on consolidated ABS issued is payable monthly. Table 15.2 – Accrued Interest Payable on Asset-Backed Securities Issued (In Thousands) September 30, 2022 December 31, 2021 Legacy Sequoia $ 223 $ 99 Sequoia 9,003 8,452 CAFL 11,202 11,030 Freddie Mac SLST (1) 4,026 4,630 Freddie Mac K-Series 1,173 1,190 Total Accrued Interest Payable on ABS Issued $ 25,627 $ 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)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Table 16.1 – Long-Term Debt September 30, 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 $ 131,316 $ — $ 131,316 N/A 4.21 % 9/2024 CAFL Facility B 102,006 (126) 101,880 N/A 4.21 % 2/2025 Facility C 71,792 (189) 71,603 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 565,028 (976) 564,052 $ 750,000 L + 2.51% N/A Recourse BPL Financing Facility G — — — 500,000 SOFR + 2.25% - 2.50% 9/2024 Total Long-Term Debt Facilities 870,142 (1,291) 868,851 Convertible notes 5.625% convertible senior notes 150,200 (1,484) 148,716 N/A 5.625 % 7/2024 5.75% exchangeable senior notes 172,092 (2,769) 169,323 N/A 5.75 % 10/2025 7.75% convertible senior notes 215,000 (6,419) 208,581 N/A 7.75 % 6/2027 Trust preferred securities and subordinated notes 139,500 (745) 138,755 N/A L + 2.25% 7/2037 Total Long-Term Debt $ 1,546,934 $ (12,708) $ 1,534,226 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 C 91,707 (376) 91,331 N/A 4.75 % 6/2026 Non-Recourse BPL Financing Facility D 307,215 (507) 306,708 $ 400,000 L + 2.75% N/A Recourse BPL Financing Facility E 234,349 (123) 234,226 450,000 L + 2.21% 9/2023 Facility F 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 September 30, 2022 and December 31, 2021. Table 16.3 – Accrued Interest Payable on Long-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Long-term debt facilities $ 2,685 $ 815 Convertible notes 4.75% convertible senior notes — 3,564 5.625% convertible senior notes 1,784 3,896 5.75% exchangeable senior notes 4,947 2,474 7.75% convertible senior notes 5,184 — Trust preferred securities and subordinated notes 1,228 581 Total Accrued Interest Payable on Long-Term Debt $ 15,828 $ 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 September 30, 2022 and December 31, 2021. Table 16.2 – Collateral for Long-Term Debt (In Thousands) September 30, 2022 December 31, 2021 Collateral Type Bridge loans $ 699,704 $ 554,597 Single-family rental loans — 244,703 Real estate securities Sequoia securitizations (1) 184,363 247,227 CAFL securitizations (1) 240,683 260,405 Total Collateral for Long-Term Debt $ 1,124,750 $ 1,306,932

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Future Lease Commitments by Year	The following table presents our future lease commitments at September 30, 2022. Table 17.1 – Future Lease Commitments by Year (In Thousands) September 30, 2022 2022 (3 months) $ 1,216 2023 4,956 2024 4,601 2025 3,580 2026 3,420 2027 and thereafter 4,553 Total Lease Commitments 22,326 Less: Imputed interest (2,793) Operating Lease Liabilities $ 19,533

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ 16,595 $ (74,383) $ 88,251 $ (78,511) Other comprehensive (loss) income (8,731) — (2,658) — Amounts reclassified from other 544 1,040 (6,200) 1,041 Net current-period other comprehensive (loss) income (8,187) 1,040 (8,858) 1,041 Balance at End of Period $ 8,408 $ (73,343) $ 79,393 $ (77,470) Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 (60,013) — 19,552 — Amounts reclassified from other 918 3,087 (16,495) 3,087 Net current-period other comprehensive (loss) income (59,095) 3,087 3,057 3,087 Balance at End of Period $ 8,408 $ (73,343) $ 79,393 $ (77,470)
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 and nine months ended September 30, 2022 and 2021. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified From Affected Line Item in the Three Months Ended September 30, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 544 $ — Gain on sale of AFS securities Realized gains, net — (6,200) $ 544 $ (6,200) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 1,040 $ 1,041 $ 1,040 $ 1,041 Amount Reclassified From Affected Line Item in the Nine Months Ended September 30, (In Thousands) Income Statement 2022 2021 Net Realized (Gain) Loss on AFS Securities Increase (decrease) in allowance for credit losses on AFS securities Investment fair value changes, net $ 2,315 $ (388) Gain on sale of AFS securities Realized gains, net (1,397) (16,107) $ 918 $ (16,495) Net Realized Loss on Interest Rate Amortization of deferred loss Interest expense $ 3,087 $ 3,087 $ 3,087 $ 3,087
Basic and Diluted Earnings Per Common Share	The following table provides the basic and diluted (loss) earnings per common share computations for the three and nine months ended September 30, 2022 and 2021. Table 18.3 – Basic and Diluted Earnings per Common Share Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, except Share Data) 2022 2021 2022 2021 Basic Earnings per Common Share: Net (loss) income attributable to Redwood $ (50,411) $ 88,286 $ (119,462) $ 275,568 Less: Dividends and undistributed earnings allocated to participating securities (1,158) (2,984) (3,445) (8,979) Net (loss) income allocated to common shareholders $ (51,569) $ 85,302 $ (122,907) $ 266,589 Basic weighted average common shares outstanding 116,087,890 112,995,847 118,530,172 112,754,691 Basic (Loss) Earnings per Common Share $ (0.44) $ 0.75 $ (1.04) $ 2.36 Diluted Earnings per Common Share: Net (loss) income attributable to Redwood $ (50,411) $ 88,286 $ (119,462) $ 275,568 Less: Dividends and undistributed earnings allocated to participating securities (1,158) (2,747) (3,445) (8,151) Add back: Interest expense on convertible notes for the period, net of tax — 6,870 — 20,585 Net (loss) income allocated to common shareholders $ (51,569) $ 92,409 $ (122,907) $ 288,002 Weighted average common shares outstanding 116,087,890 112,995,847 118,530,172 112,754,691 Net effect of dilutive equity awards — 292,749 — 253,819 Net effect of assumed convertible notes conversion to common shares — 28,566,875 — 28,566,875 Diluted weighted average common shares outstanding 116,087,890 141,855,471 118,530,172 141,575,385 Diluted (Loss) Earnings per Common Share $ (0.44) $ 0.65 $ (1.04) $ 2.03

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 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 $35 million at September 30, 2022, as shown in the following table. Table 19.1 – Activities of Equity Compensation Costs by Award Type Nine Months Ended September 30, 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 — 2,513 7,960 — 323 10,796 Performance-based valuation adjustment — — — (3,205) — (3,205) Equity grant forfeitures (5) (448) (101) — — (554) Equity compensation expense (79) (1,567) (10,412) (2,524) (242) (14,824) Unrecognized Compensation Cost at End of Period $ — $ 4,087 $ 23,920 $ 6,508 $ 81 $ 34,596

Mortgage Banking Activities, _2

Mortgage Banking Activities, Net (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021. Table 20.1 – Mortgage Banking Activities Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 Residential Mortgage Banking Activities, Net Changes in fair value of: Residential loans, at fair value (1) $ (22,776) $ 27,862 $ (125,012) $ 75,496 Trading securities (2) 148 32 4,249 (342) Risk management derivatives (3) 24,319 3,963 107,573 37,187 Other income (expense), net (4) 467 1,089 5,496 3,305 Total residential mortgage banking activities, net 2,158 32,946 (7,694) 115,646 Business Purpose Mortgage Banking Activities, Net: Changes in fair value of: Single-family rental loans, at fair value (1) (19,306) 18,461 (84,493) 54,675 Risk management derivatives (3) 24,044 (424) 56,564 930 Bridge loans, at fair value (9) 3,433 2,242 6,702 Other income, net (5) 9,648 8,747 36,214 22,236 Total business purpose mortgage banking activities, net 14,377 30,217 10,527 84,543 Mortgage Banking Activities, Net $ 16,535 $ 63,163 $ 2,833 $ 200,189 (1) For residential loans, includes changes in fair value for associated loan purchase commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments. (2) Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations. (3) Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations. (4) Amounts in this line item include other fee income from loan acquisitions and provisions for repurchases, presented net. (5) Amounts in this line item include other fee income from loan originations.

Other Income, Net (Tables)

Other Income, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Other Income and Expenses [Abstract]
Schedule of Other Income, Net	The following table presents the components of Other income recorded in our consolidated statements of income for the three and nine months ended September 30, 2022 and 2021. Table 21.1 – Other Income, Net Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 MSR income, net (1) $ 2,890 $ 295 $ 12,569 $ 949 Bridge loan fees 1,489 1,131 3,952 2,735 Risk share income 279 575 1,062 2,318 Other (631) 387 (567) 2,355 Other Income, Net $ 4,027 $ 2,388 $ 17,016 $ 8,357 (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)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021 are presented in the following table. Table 22.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses Three Months Ended September 30, Nine Months Ended September 30, (In Thousands) 2022 2021 2022 2021 General and Administrative Expenses Fixed compensation expense (1) $ 18,626 $ 11,285 $ 45,364 $ 34,359 Annual variable compensation expense 3,521 19,844 8,689 51,021 Long-term incentive award expense (2) 4,998 4,915 16,190 14,766 Acquisition-related equity compensation expense (3) — 1,189 — 3,613 Systems and consulting 3,909 2,975 10,796 9,224 Office costs 2,381 2,197 6,489 6,029 Accounting and legal 1,775 1,197 5,026 3,132 Corporate costs 928 964 2,792 2,528 Other 3,969 3,126 11,581 7,165 Total General and Administrative Expenses 40,107 47,692 106,927 131,837 Loan Acquisition Costs Commissions 1,549 1,906 6,279 4,830 Underwriting costs 545 2,351 3,013 5,872 Transfer and holding costs 332 364 1,079 1,226 Total Loan Acquisition Costs 2,426 4,621 10,371 11,928 Other Expenses Amortization of purchase-related intangible assets 3,891 3,873 10,731 11,619 Other 370 150 1,083 485 Total Other Expenses 4,261 4,023 11,814 12,104 Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses $ 46,794 $ 56,336 $ 129,112 $ 155,869 (1) Includes $3 million of severance and transition-related expenses for the three and nine months ended September 30, 2022. (2) For the three months ended September 30, 2022 and 2021, long-term incentive award expense included $5 million and $3 million of expense for awards settleable in shares of our common stock, and $0.1 million and $1 million of expense for awards settleable in cash, respectively. For the nine months ended September 30, 2022 and 2021, long-term incentive award expense included $15 million and $10 million of expense for awards settleable in shares of our common stock, and $1 million and $4 million of expense for awards settleable in cash, respectively. (3) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest in 2019. 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)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and 2021. Table 23.1 – Reconciliation of Statutory Tax Rate to Effective Tax Rate September 30, 2022 September 30, 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 (29.6) % (13.1) % Change in valuation allowance (2.4) % (6.8) % Dividends paid deduction 10.5 % (4.9) % Effective Tax Rate 8.1 % 4.8 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Business Segment Financial Information	The following tables present financial information by segment for the three and nine months ended September 30, 2022 and 2021. Table 24.1 – Business Segment Financial Information Three Months Ended September 30, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 9,882 $ 9,082 $ 156,882 $ 1,816 $ 177,662 Interest expense (8,083) (5,971) (111,876) (16,797) (142,727) Net interest income 1,799 3,111 45,006 (14,981) 34,935 Non-interest (loss) income Mortgage banking activities, net 2,158 14,377 — — 16,535 Investment fair value changes, net — — (61,780) 4,083 (57,697) Other income, net — 399 3,906 (278) 4,027 Realized gains, net — — — — — Total non-interest income (loss), net 2,158 14,776 (57,874) 3,805 (37,135) General and administrative expenses (5,735) (18,535) (3,502) (12,335) (40,107) Loan acquisition costs (550) (1,876) — — (2,426) Other expenses — (3,891) (370) — (4,261) Benefit from (provision for) income taxes 1,688 2,559 (5,664) — (1,417) Segment Contribution $ (640) $ (3,856) $ (22,404) $ (23,511) Net (Loss) $ (50,411) Non-cash amortization (expense) income, net $ (185) $ (3,609) $ (3,658) $ (2,843) $ (10,295) Nine Months Ended September 30, 2022 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 36,048 $ 22,509 $ 471,932 $ 4,028 $ 534,517 Interest expense (23,316) (12,797) (331,047) (38,832) (405,992) Net interest income 12,732 9,712 140,885 (34,804) 128,525 Non-interest (loss) income Mortgage banking activities, net (7,694) 10,527 — — 2,833 Investment fair value changes, net — — (165,297) 13,508 (151,789) Other income, net — 2,028 15,423 (435) 17,016 Realized gains, net — — 2,581 — 2,581 Total non-interest (loss) income, net (7,694) 12,555 (147,293) 13,073 (129,359) General and administrative expenses (17,918) (40,076) (9,676) (39,257) (106,927) Loan acquisition costs (2,848) (7,523) — — (10,371) Other expenses 74 (10,731) (1,157) — (11,814) Benefit from (provision for) income taxes 8,283 9,009 (6,808) — 10,484 Segment Contribution $ (7,371) $ (27,054) $ (24,049) $ (60,988) Net (Loss) $ (119,462) Non-cash amortization (expense) income, net $ (699) $ (11,563) $ 4,385 $ (6,428) $ (14,305) Three Months Ended September 30, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 14,712 $ 3,967 $ 125,994 $ 1,049 $ 145,722 Interest expense (7,537) (2,013) (84,049) (10,155) (103,754) Net interest income 7,175 1,954 41,945 (9,106) 41,968 Non-interest income Mortgage banking activities, net 32,946 30,217 — — 63,163 Investment fair value changes, net — — 26,324 (247) 26,077 Other income, net — 216 1,842 330 2,388 Realized gains, net — — 6,703 — 6,703 Total non-interest income, net 32,946 30,433 34,869 83 98,331 General and administrative expenses (7,891) (12,017) (4,483) (23,301) (47,692) Loan acquisition costs (2,395) (2,175) (51) — (4,621) Other expenses — (3,873) (150) — (4,023) (Provision for) benefit from income taxes (10,429) (3,485) (1,045) 19,282 4,323 Segment Contribution $ 19,406 $ 10,837 $ 71,085 $ (13,042) Net Income $ 88,286 Non-cash amortization (expense) income, net $ (33) $ (4,224) $ 5,682 $ (1,995) $ (570) Nine Months Ended September 30, 2021 (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total Interest income $ 35,536 $ 9,849 $ 363,751 $ 3,586 $ 412,722 Interest expense (19,903) (5,134) (258,685) (30,649) (314,371) Net interest income 15,633 4,715 105,066 (27,063) 98,351 Non-interest income Mortgage banking activities, net 115,646 84,543 — — 200,189 Investment fair value changes, net — — 121,812 (1,168) 120,644 Other income, net — 494 7,121 742 8,357 Realized gains, net — — 17,803 — 17,803 Total non-interest income (loss), net 115,646 85,037 146,736 (426) 346,993 General and administrative expenses (27,478) (34,567) (10,804) (58,988) (131,837) Loan acquisition costs (5,686) (5,528) (710) (4) (11,928) Other expenses (6) (11,523) (592) 17 (12,104) Provision for income taxes (23,640) (6,988) (2,561) 19,282 (13,907) Segment Contribution $ 74,469 $ 31,146 $ 237,135 $ (67,182) Net Income $ 275,568 Non-cash amortization income (expense), net $ 8,867 $ (16,154) $ 317 $ (5,845) $ (12,815)
Components of Corporate and Other	The following table presents the components of Corporate/Other for the three and nine months ended September 30, 2022 and 2021. Table 24.2 – Components of Corporate/Other Three Months Ended September 30, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 1,473 $ 343 $ 1,816 $ 1,042 $ 7 $ 1,049 Interest expense (1,486) (15,311) (16,797) (641) (9,514) (10,155) Net interest income (13) (14,968) (14,981) 401 (9,507) (9,106) Non-interest income Investment fair value changes, net (329) 4,412 4,083 (247) — (247) Other income — (278) (278) — 330 330 Total non-interest income, net (329) 4,134 3,805 (247) 330 83 General and administrative expenses — (12,335) (12,335) — (23,301) (23,301) Loan acquisition costs — — — — — — Other expenses — — — — — — Provision for income taxes — — — — 19,282 19,282 Total $ (342) $ (23,169) $ (23,511) $ 154 $ (13,196) $ (13,042) Nine Months Ended September 30, 2022 2021 (In Thousands) Legacy Consolidated VIEs (1) Other Total Legacy Consolidated VIEs (1) Other Total Interest income $ 3,593 $ 435 $ 4,028 $ 3,559 $ 27 $ 3,586 Interest expense (3,154) (35,678) (38,832) (2,271) (28,378) (30,649) Net interest income 439 (35,243) (34,804) 1,288 (28,351) (27,063) Non-interest income Investment fair value changes, net (1,379) 14,887 13,508 (1,162) (6) (1,168) Other income — (435) (435) — 742 742 Total non-interest income, net (1,379) 14,452 13,073 (1,162) 736 (426) General and administrative expenses — (39,257) (39,257) — (58,988) (58,988) Loan acquisition costs — — — — (4) (4) Other expenses — — — — 17 17 Provision for income taxes — — — — 19,282 19,282 Total $ (940) $ (60,048) $ (60,988) $ 126 $ (67,308) $ (67,182) (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 September 30, 2022 and December 31, 2021. Table 24.3 – Supplemental Segment Information (In Thousands) Residential Mortgage Banking Business Purpose Mortgage Banking Investment Portfolio Corporate/ Total September 30, 2022 Residential loans $ 676,458 $ — $ 4,877,938 $ 198,160 $ 5,752,556 Business purpose loans — 337,238 4,919,980 — 5,257,218 Consolidated Agency multifamily loans — — 427,458 — 427,458 Real estate securities — — 259,212 — 259,212 Home equity investments — — 340,437 — 340,437 Other investments — — 341,155 71,607 412,762 Goodwill — 23,373 — — 23,373 Intangible assets — 44,130 — — 44,130 Total assets 738,301 473,748 11,301,836 632,062 13,145,947 December 31, 2021 Residential loans $ 1,673,235 $ — $ 5,688,742 $ 230,455 $ 7,592,432 Business purpose loans — 347,860 4,443,129 — 4,790,989 Consolidated Agency multifamily loans — — 473,514 — 473,514 Real estate securities 4,927 — 372,484 — 377,411 Home equity investments — — 192,740 — 192,740 Other investments — — 413,527 35,702 449,229 Intangible assets — 41,561 — — 41,561 Total assets 1,716,285 464,967 11,770,486 755,206 14,706,944

Organization (Details)

Organization (Details)	9 Months Ended
	Sep. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 01, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) partnership	Sep. 30, 2021 USD ($)	Dec. 31, 2019 USD ($)
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2
Amortization of intangible assets		$ 4,000	$ 4,000	$ 11,000	$ 12,000
Interest income		34,935	41,968	128,525	98,351
Total non-interest (loss) income, net		(37,135)	98,331	(129,359)	346,993
Net (Loss) Income		50,411	(88,286)	119,462	(275,568)
Riverbend Funding, LLC
Variable Interest Entity [Line Items]
Cash	$ 44,126
Earn out period	2 years
Potential future payments on loans	$ 25,300
Contingent consideration, at fair value	0
Acquisition related costs				1,000
Intangible assets	$ 13,000
Amortization of intangible assets		(600)
Goodwill recognized from acquisition				23,373
Goodwill deductible for tax purposes		23,000		23,000
Net interest income		34,935	43,174	132,475	100,570
Non-interest (loss) income		(37,135)	102,436	(121,614)	355,456
Net (loss) income		(50,411)	89,923	$ (117,090)	278,134
Interest income		1,000
Total non-interest (loss) income, net		500
Net (Loss) Income		(1,000)
5 Arches
Variable Interest Entity [Line Items]
Intangible assets						$ 25,000
CAFL
Variable Interest Entity [Line Items]
Intangible assets						$ 57,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership				2
VIE, ownership interest rate (as a percent)				80%
Interest income		29,518	21,554	$ 90,072	63,966
Total non-interest (loss) income, net		(60,951)	18,390	(127,000)	78,333
Net (Loss) Income		$ 31,860	$ (39,735)	$ 38,216	$ (141,558)

Basis of Presentation - Schedul

Basis of Presentation - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		Jul. 01, 2022	Sep. 30, 2022	Dec. 31, 2021
Allocated to:
Goodwill	[1]		$ 23,373	$ 0
Riverbend Funding, LLC
Purchase price:
Cash		$ 44,126
Provisional consideration payable		477
Contingent consideration, at fair value		0
Total consideration		44,603
Allocated to:
Business purpose loans, at fair value		59,748
Other investments		2,443
Cash and cash equivalents		3,490
Other assets		13,306
Goodwill		23,373	$ 23,373	$ 0
Intangible assets		13,300
Total assets acquired		115,660
Short-term debt, net		67,423
Accrued expenses and other liabilities		3,634
Total liabilities assumed		71,057
Total net assets acquired		$ 44,603
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Basis of Presentation - Intangi

Basis of Presentation - Intangible Assets – Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying value	$ 44,130
5 Arches LLC and CoreVest
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	94,600
Accumulated amortization	(50,470)
Carrying value	$ 44,130
Weighted Average Amortization Period (in years)	6 years
5 Arches LLC and CoreVest | Borrower network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 56,300
Accumulated amortization	(19,537)
Carrying value	$ 36,763
Weighted Average Amortization Period (in years)	7 years
5 Arches LLC and CoreVest | Broker network
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 18,100
Accumulated amortization	(12,972)
Carrying value	$ 5,128
Weighted Average Amortization Period (in years)	5 years
5 Arches LLC and CoreVest | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 11,400
Accumulated amortization	(9,567)
Carrying value	$ 1,833
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Tradenames
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 4,400
Accumulated amortization	(3,994)
Carrying value	$ 406
Weighted Average Amortization Period (in years)	3 years
5 Arches LLC and CoreVest | Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 1,800
Accumulated amortization	(1,800)
Carrying value	$ 0
Weighted Average Amortization Period (in years)	2 years
5 Arches LLC and CoreVest | Loan administration fees on existing loan assets
Finite-Lived Intangible Assets [Line Items]
Intangible Assets at Acquisition	$ 2,600
Accumulated amortization	(2,600)
Carrying value	$ 0
Weighted Average Amortization Period (in years)	1 year

Basis of Presentation - Intan_2

Basis of Presentation - Intangible Asset Amortization Expense by Year (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2022 (3 months)	$ 3,238
2023	12,430
2024	9,413
2025	8,426
2026	6,695
2027 and thereafter	3,928
Total Future Intangible Asset Amortization	$ 44,130

Basis of Presentation - Goodwil

Basis of Presentation - Goodwill – Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 0	[1]
Ending Balance	23,373	[1]
Riverbend Funding, LLC
Goodwill [Roll Forward]
Beginning balance	0
Goodwill recognized from acquisition	23,373
Impairment	0
Ending Balance	$ 23,373
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Basis of Presentation - Pro For

Basis of Presentation - Pro Forma Information (Details) - Riverbend Funding, LLC - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Net interest income	$ 34,935	$ 43,174	$ 132,475	$ 100,570
Non-interest (loss) income	(37,135)	102,436	(121,614)	355,456
Net (loss) income	$ (50,411)	$ 89,923	$ (117,090)	$ 278,134

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Borrowings	$ 1,546,934	$ 1,650,576
Notional Amount	2,116,501	6,861,921
Interest rate contract
Debt Instrument [Line Items]
Notional Amount	37,000	$ 2,100,000
Repo or Warehouse Debt
Debt Instrument [Line Items]
Borrowings	689,000
Bridge Loan
Debt Instrument [Line Items]
Borrowings	757,000
Trust Preferred Securities and Subordinated Notes
Debt Instrument [Line Items]
Borrowings	$ 140,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Offsetting of Financial Assets, Liabilities, and Collateral (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Assets
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	$ 65,213	$ 26,467
Liabilities
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet	[1]	(6,782)	(3,317)
Total Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(230,940)	(575,534)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(230,940)	(575,534)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		224,924	574,629
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		1,280	895
Net Amount		(4,736)	(10)
Interest rate agreements
Assets
Gross Amounts of Recognized Assets (Liabilities)		24,626	18,929
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		24,626	18,929
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(23)	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(7,638)	(16,046)
Net Amount		16,965	1,632
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(23)	(1,251)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(23)	(1,251)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		23	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)		13,568	2,880
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		13,568	2,880
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(529)	(633)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(12,077)	(704)
Net Amount		962	1,543
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(6,545)	(658)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(6,545)	(658)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		529	633
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		1,280	15
Net Amount		(4,736)	(10)
Futures
Assets
Gross Amounts of Recognized Assets (Liabilities)		26,275	25
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		26,275	25
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(2)	(25)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(10,675)	0
Net Amount		15,598	0
Liabilities
Gross Amounts of Recognized Assets (Liabilities)		(2)	(905)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(2)	(905)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		2	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)		64,469	21,834
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		64,469	21,834
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		(554)	(1,909)
Gross Amounts Not Offset in Consolidated Balance Sheet, Cash Collateral (Received) Pledged		(30,390)	(16,750)
Net Amount		33,525	3,175
Loan warehouse debt
Loan warehouse debt and Security repurchase agreement
Gross Amounts of Recognized Assets (Liabilities)		(224,370)	(572,720)
Gross Amounts Offset in Consolidated Balance Sheet		0	0
Net Amounts of Assets (Liabilities) Presented in Consolidated Balance Sheet		(224,370)	(572,720)
Gross Amounts Not Offset in Consolidated Balance Sheet, Financial Instruments		224,370	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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Principles of Consolidation - A

Principles of Consolidation - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) entity partnership
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
Loans for sale at fair value that were acquired | $	$ 158
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of partnerships consolidated | partnership	2
VIE, ownership interest rate (as a percent)	80%
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of securitization entities to which asset transferred (in entities) | entity	46
Number of entities called | entity	3
Unpaid principal balance of loans purchased | $	$ 102

Principles of Consolidation -_2

Principles of Consolidation - Assets and Liabilities of Consolidated Variable Interest Entities Accounted for as Collateralized Financing Entities (Details) $ in Thousands		Sep. 30, 2022 USD ($) investment	Dec. 31, 2021 USD ($) investment
Variable Interest Entity [Line Items]
Home equity investments		$ 340,437	$ 192,740
Other investments	[1]	412,762	449,229
Cash and cash equivalents	[1]	297,092	450,485
Restricted cash	[1]	71,996	80,999
Accrued interest receivable		54,944	47,515
Other assets	[1]	194,500	231,117
Total Assets	[1]	13,145,947	14,706,944
Short-term debt	[1]	2,110,279	2,177,362
Accrued interest payable		46,938	39,297
Accrued expenses and other liabilities	[1]	201,125	245,788
Asset-backed securities issued	[1]	8,139,293	9,253,557
Total liabilities	[1]	11,991,705	13,320,857
CAFL
Variable Interest Entity [Line Items]
Fair value of securities owned		314,000	302,000
Freddie Mac SLST
Variable Interest Entity [Line Items]
Fair value of securities owned		335,000	445,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets		9,449,163	10,661,081
Total liabilities		8,448,479	9,619,347
Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		139,728
Other investments		307,723	544,307
Cash and cash equivalents		15,923	6,481
Restricted cash		38,168	46,086
Accrued interest receivable		36,284	35,401
Other assets		34,355	41,826
Total Assets		9,449,163	10,661,081
Short-term debt		233,104	294,447
Accrued interest payable		25,580	25,018
Accrued expenses and other liabilities		50,502	46,325
Asset-backed securities issued		8,139,293	9,253,557
Total liabilities		8,448,479	9,619,347
Value of our investments in VIEs		$ 993,406	$ 1,033,913
Number of VIEs | investment		64	60
Residential loans, held-for-investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 4,918,295	$ 5,747,150
Business purpose loans, held-for-investment
Variable Interest Entity [Line Items]
Fair value of loans	[1]	4,919,980	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		3,531,229	3,766,316
Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		427,458	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		92	148
Accrued interest receivable		226	210
Other assets		407	61
Total Assets		198,886	230,874
Short-term debt		0	0
Accrued interest payable		224	99
Accrued expenses and other liabilities		(58)	0
Asset-backed securities issued		197,354	227,881
Total liabilities		197,520	227,980
Value of our investments in VIEs		$ 1,214	$ 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		$ 198,161	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Sequoia | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		78	5
Accrued interest receivable		11,295	10,885
Other assets		0	0
Total Assets		3,248,543	3,639,355
Short-term debt		0	0
Accrued interest payable		9,003	8,452
Accrued expenses and other liabilities		80	5
Asset-backed securities issued		3,013,249	3,383,048
Total liabilities		3,022,332	3,391,505
Value of our investments in VIEs		$ 223,920	$ 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		$ 3,237,170	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
CAFL | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		15,889	15,221
Accrued interest receivable		17,497	15,737
Other assets		24,084	32,510
Total Assets		3,588,699	3,829,784
Short-term debt		0	0
Accrued interest payable		11,202	11,030
Accrued expenses and other liabilities		1,903	1,171
Asset-backed securities issued		3,179,487	3,474,898
Total liabilities		3,192,592	3,487,099
Value of our investments in VIEs		$ 393,015	$ 339,419
Number of VIEs | investment		19	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		3,531,229	3,766,316
CAFL | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		5,247	5,792
Other assets		2,544	2,028
Total Assets		1,490,755	1,896,050
Short-term debt		0	0
Accrued interest payable		3,630	4,055
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		1,249,041	1,588,463
Total liabilities		1,252,671	1,592,518
Value of our investments in VIEs		$ 236,467	$ 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		$ 1,482,964	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		0	0
Cash and cash equivalents		0	0
Restricted cash		0	0
Accrued interest receivable		1,299	1,315
Other assets		0	0
Total Assets		428,757	474,829
Short-term debt		0	0
Accrued interest payable		1,173	1,190
Accrued expenses and other liabilities		0	0
Asset-backed securities issued		395,411	441,857
Total liabilities		396,584	443,047
Value of our investments in VIEs		$ 32,047	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		427,458	473,514
Servicing Investment | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Other investments		307,723	384,754
Cash and cash equivalents		15,923	6,481
Restricted cash		18,569	25,420
Accrued interest receivable		720	1,462
Other assets		7,270	7,177
Total Assets		350,205	425,294
Short-term debt		233,104	294,447
Accrued interest payable		348	192
Accrued expenses and other liabilities		24,223	28,115
Asset-backed securities issued		0	0
Total liabilities		257,675	322,754
Value of our investments in VIEs		$ 92,530	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		0	0
HEI | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Home equity investments		139,728
Other investments		0	159,553
Cash and cash equivalents		0	0
Restricted cash		3,540	5,292
Accrued interest receivable		0	0
Other assets		50	50
Total Assets		143,318	164,895
Short-term debt		0	0
Accrued interest payable		0	0
Accrued expenses and other liabilities		24,354	17,034
Asset-backed securities issued		104,751	137,410
Total liabilities		129,105	154,444
Value of our investments in VIEs		$ 14,213	$ 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 | Consolidated Agency multifamily loans | Variable Interest Entity, Primary Beneficiary | Collateralized Financing Entities
Variable Interest Entity [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Variable Interest Entity [Line Items]
Interest income	$ 177,662	$ 145,722	$ 534,517	$ 412,722
Interest expense	(142,727)	(103,754)	(405,992)	(314,371)
Net Interest Income	34,935	41,968	128,525	98,351
Investment fair value changes, net	(57,697)	26,077	(151,789)	120,644
Total non-interest (loss) income, net	(37,135)	98,331	(129,359)	346,993
General and administrative expenses	(40,107)	(47,692)	(106,927)	(131,837)
Net (Loss) Income	(50,411)	88,286	(119,462)	275,568
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	123,161	96,304	381,969	290,092
Interest expense	(93,643)	(74,750)	(291,897)	(226,126)
Net Interest Income	29,518	21,554	90,072	63,966
Investment fair value changes, net	(61,237)	18,380	(127,631)	78,323
Other income	286	10	631	10
Total non-interest (loss) income, net	(60,951)	18,390	(127,000)	78,333
General and administrative expenses	(55)	(60)	(130)	(150)
Other expenses	(372)	(149)	(1,158)	(591)
Net (Loss) Income	(31,860)	39,735	(38,216)	141,558
Legacy Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	1,475	1,042	3,595	3,559
Interest expense	(1,486)	(641)	(3,154)	(2,271)
Net Interest Income	(11)	401	441	1,288
Investment fair value changes, net	(328)	(247)	(1,378)	(1,162)
Other income	0	0	0	0
Total non-interest (loss) income, net	(328)	(247)	(1,378)	(1,162)
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	(339)	154	(937)	126
Sequoia | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	31,587	18,867	95,608	48,842
Interest expense	(27,541)	(15,368)	(84,041)	(38,848)
Net Interest Income	4,046	3,499	11,567	9,994
Investment fair value changes, net	(10,936)	3,314	(20,644)	13,118
Other income	0	0	0	0
Total non-interest (loss) income, net	(10,936)	3,314	(20,644)	13,118
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	(6,890)	6,813	(9,077)	23,112
CAFL | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	61,439	48,937	195,381	152,659
Interest expense	(44,804)	(37,489)	(145,207)	(118,543)
Net Interest Income	16,635	11,448	50,174	34,116
Investment fair value changes, net	(4,527)	2,943	(23,972)	6,354
Other income	286	10	631	10
Total non-interest (loss) income, net	(4,241)	2,953	(23,341)	6,364
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	12,394	14,401	26,833	40,480
Freddie Mac SLST | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	16,098	18,707	49,851	58,372
Interest expense	(12,829)	(15,774)	(40,286)	(49,756)
Net Interest Income	3,269	2,933	9,565	8,616
Investment fair value changes, net	(41,892)	13,849	(74,796)	54,282
Other income	0	0	0	0
Total non-interest (loss) income, net	(41,892)	13,849	(74,796)	54,282
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	(38,623)	16,782	(65,231)	62,898
Freddie Mac K-Series | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	4,762	4,846	14,247	14,492
Interest expense	(4,377)	(4,460)	(13,099)	(13,294)
Net Interest Income	385	386	1,148	1,198
Investment fair value changes, net	316	554	390	11,330
Other income	0	0	0	0
Total non-interest (loss) income, net	316	554	390	11,330
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	701	940	1,538	12,528
Servicing Investment | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	7,800	3,905	23,287	12,168
Interest expense	(2,606)	(1,018)	(6,110)	(3,414)
Net Interest Income	5,194	2,887	17,177	8,754
Investment fair value changes, net	(3,286)	(2,080)	(11,259)	(5,646)
Other income	0	0	0	0
Total non-interest (loss) income, net	(3,286)	(2,080)	(11,259)	(5,646)
General and administrative expenses	(55)	(60)	(130)	(150)
Other expenses	(372)	(149)	(1,158)	(591)
Net (Loss) Income	1,481	598	4,630	2,367
HEI | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net Interest Income	0	0	0	0
Investment fair value changes, net	(584)	47	4,028	47
Other income	0	0	0	0
Total non-interest (loss) income, net	(584)	47	4,028	47
General and administrative expenses	0	0	0	0
Other expenses	0	0	0	0
Net (Loss) Income	$ (584)	$ 47	$ 4,028	$ 47

Principles of Consolidation - S

Principles of Consolidation - Securitization Activity Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Variable Interest Entity [Line Items]
Principal balance of loans transferred	$ 0	$ 0	$ 0	$ 1,231,803
Trading securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	0	0	0	7,774
AFS securities retained, at fair value
Variable Interest Entity [Line Items]
Securities retained, at fair value	$ 0	$ 0	$ 0	$ 1,600

Principles of Consolidation - C

Principles of Consolidation - Cash Flows Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Variable Interest Entity [Line Items]
Proceeds from new transfers	$ 0	$ 0	$ 0	$ 1,266,063
MSR fees received	737	1,095	2,365	4,038
Funding of compensating interest, net	(11)	54	(41)	(116)
Cash flows received on retained securities	$ 3,096	$ 16,724	$ 20,380	$ 42,117

Principles of Consolidation -_3

Principles of Consolidation - Assumptions Related to Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - Variable Interest Entity, Not Primary Beneficiary	9 Months Ended
	Sep. 30, 2021
Senior IO Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	11%
Discount rates	15%
Credit loss assumptions	0.23%
Subordinate Securities
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Prepayment rates	11%
Discount rates	6%
Credit loss assumptions	0.23%

Principles of Consolidation -_4

Principles of Consolidation - Summary of Unconsolidated Variable Interest Entity's Sponsored by Redwood (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	$ 142,279	$ 206,792
Total Subordinate Investment Securities
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	142,279	206,792
Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Maximum loss exposure	118,491	152,206
Assets transferred:
Principal balance of loans outstanding	4,146,817	4,959,234
Principal balance of loans 30+ days delinquent	21,803	30,594
Variable Interest Entity, Not Primary Beneficiary | Total Subordinate Investment Securities
On-balance sheet assets, at fair value:
Subordinate securities, classified as AFS	78,065	127,542
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	28,511	18,214
Mortgage servicing rights
On-balance sheet assets, at fair value:
Mortgage servicing rights	24,796	12,438
Mortgage servicing rights | Variable Interest Entity, Not Primary Beneficiary
On-balance sheet assets, at fair value:
Mortgage servicing rights	$ 11,915	$ 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	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
MSRs
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value	$ 11,915	$ 6,450
Expected life (in years)	7 years	3 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	29%
Decrease in fair value from:
10% adverse change	$ 334	$ 447
25% adverse change	$ 810	$ 1,020
Discount rate assumption	11%	12%
Decrease in fair value from:
100 basis point increase	$ 441	$ 152
200 basis point increase	852	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	$ 28,511	$ 18,214
Expected life (in years)	7 years	4 years
Prepayment speed assumption (annual CPR) (as a percent)	11%	23%
Decrease in fair value from:
10% adverse change	$ 942	$ 1,130
25% adverse change	$ 2,291	$ 2,596
Discount rate assumption	12%	16%
Decrease in fair value from:
100 basis point increase	$ 1,001	$ 426
200 basis point increase	$ 1,889	$ 829
Credit loss assumption	0.04%	0.35%
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	$ 78,065	$ 127,542
Expected life (in years)	16 years	5 years
Prepayment speed assumption (annual CPR) (as a percent)	8%	32%
Decrease in fair value from:
10% adverse change	$ 570	$ 531
25% adverse change	$ 1,132	$ 1,440
Discount rate assumption	8%	5%
Decrease in fair value from:
100 basis point increase	$ 7,714	$ 4,801
200 basis point increase	$ 14,345	$ 9,139
Credit loss assumption	0.04%	0.35%
Decrease in fair value from:
10% higher losses	$ 190	$ 1,528
25% higher losses	$ 254	$ 3,819
Minimum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Minimum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Minimum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	10%	10%
Impact of increase in discount rate assumption	1%	1%
Impact of adverse change in expected credit losses	10%	10%
Maximum | MSRs
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%
Maximum | Senior Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%
Maximum | Subordinate Securities
Decrease in fair value from:
Impact of adverse change in prepayment speed	25%	25%
Impact of increase in discount rate assumption	2%	2%
Impact of adverse change in expected credit losses	25%	25%

Principles of Consolidation -_5

Principles of Consolidation - Summary of Redwood's Interest in Third-Party Variable Interest Entity's (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Real estate securities	[1]	$ 259,212	$ 377,411
Other assets | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		160,298	242,055
Other assets | Senior | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		348	3,572
Other assets | Subordinate | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		152,288	228,083
Other assets | Total Mortgage-Backed Securities | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		152,636	231,655
Other assets | Excess MSR | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Real estate securities		$ 7,662	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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		Sep. 30, 2022	Dec. 31, 2021
Assets
Real estate securities, at fair value		$ 116,933	$ 170,619
Shared home appreciation options	[1]	340,437	192,740
Derivative assets	[1]	65,213	26,467
Liabilities
Derivative liabilities	[1]	6,782	3,317
ABS issued, net, At fair value		7,564,312	8,843,147
Residential loans, held-for-sale, at fair value
Assets
Loans receivable, fair value		828,192	1,838,797
Servicer advance investments
Assets
MSRs		274,934	350,923
Carrying Value
Assets
Real estate securities, at fair value		259,212	377,411
Other financial instruments		11,174	12,663
Cash and cash equivalents		297,092	450,485
Restricted cash		71,996	80,999
Derivative assets		65,213	26,467
Margin receivable		6,683	7,269
Liabilities
Margin payable		30,389	24,368
Guarantee obligation		6,532	7,459
Derivative liabilities		6,782	3,317
ABS issued, net, At fair value		7,564,312	8,843,147
ABS issued, net, At amortized cost		574,981	410,410
Other long-term debt, net		868,851	988,483
Convertible notes, net		724,205	513,629
Trust preferred securities and subordinated notes, net		138,755	138,721
Carrying Value | Servicer Advance Investments
Assets
MSRs		274,934	350,923
Carrying Value | MSRs
Assets
MSRs		24,796	12,438
Carrying Value | Excess MSRs
Assets
REO		40,452	44,231
Carrying Value | REO
Assets
REO		3,683	36,126
Carrying Value | Short-term debt (3)
Liabilities
Short-term debt		1,912,694	2,177,362
Carrying Value | Servicer advance investments | Residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		834,262	1,845,248
Carrying Value | Servicer advance investments | Residential loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,918,294	5,747,150
Carrying Value | Servicer advance investments | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		337,238	358,309
Carrying Value | Servicer advance investments | Business purpose loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,919,980	4,432,680
Carrying Value | Servicer advance investments | Consolidated Agency multifamily loans, at fair value
Assets
Loans receivable, fair value		427,458	473,514
Fair Value
Assets
Real estate securities, at fair value		259,212	377,411
Other financial instruments		11,174	12,663
Cash and cash equivalents		297,092	450,485
Restricted cash		71,996	80,999
Derivative assets		65,213	26,467
Margin receivable		6,683	7,269
Liabilities
Margin payable		30,389	24,368
Guarantee obligation		5,237	7,133
Derivative liabilities		6,782	3,317
ABS issued, net, At fair value		7,564,312	8,843,147
ABS issued, net, At amortized cost		541,773	410,471
Other long-term debt, net		858,810	989,570
Convertible notes, net		651,888	537,300
Trust preferred securities and subordinated notes, net		76,725	97,650
Fair Value | Servicer Advance Investments
Assets
MSRs		274,934	350,923
Fair Value | MSRs
Assets
MSRs		24,796	12,438
Fair Value | Excess MSRs
Assets
REO		40,452	44,231
Fair Value | REO
Assets
REO		4,105	39,272
Fair Value | Short-term debt (3)
Liabilities
Short-term debt		1,912,694	2,177,362
Fair Value | Servicer advance investments | Residential loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		834,262	1,845,248
Fair Value | Servicer advance investments | Residential loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,918,294	5,747,150
Fair Value | Servicer advance investments | Business purpose loans, held-for-sale, at fair value
Assets
Loans, held-for-sale		337,238	358,309
Fair Value | Servicer advance investments | Business purpose loans, held-for-investment, at fair value
Assets
Loans receivable, fair value		4,919,980	4,432,680
Fair Value | Servicer advance investments | Consolidated Agency multifamily loans, at fair value
Assets
Loans receivable, fair value		427,458	473,514
Shared home appreciation options | Carrying Value
Assets
Shared home appreciation options		340,437	192,740
Liabilities
HEI securitization non-controlling interest		24,355	17,035
Shared home appreciation options | Fair Value
Assets
Shared home appreciation options		340,437	192,740
Liabilities
HEI securitization non-controlling interest		$ 24,355	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investments	$ 10,000	$ 10,000
Securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	0	5,000
Residential loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	340,000	3,600,000
Business purpose loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value option elected aggregate carrying amount, asset	630,000	2,470,000
Acquisitions		181,814
HEIs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	80,000	176,000
MSRs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisitions	$ 0	$ 8,293

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Assets
Real estate securities, at fair value		$ 116,933	$ 170,619
Other investments	[1]	412,762	449,229
Derivative assets	[1]	65,213	26,467
Liabilities
Derivative liabilities	[1]	6,782	3,317
ABS issued		7,564,312	8,843,147
Fair Value, Measurements, Recurring
Assets
Business purpose loans		5,257,218	4,790,989
Consolidated Agency multifamily loans		427,458	473,514
Real estate securities, at fair value		259,212	377,411
Servicer advance investments		274,934	350,923
MSRs		24,796	12,438
Excess MSRs		40,452	44,231
HEIs		340,437	192,740
Other investments		11,174	17,574
Derivative assets		65,213	26,467
FHLBC stock			10
Liabilities
HEI securitization non-controlling interest		24,355	17,035
Derivative liabilities		6,782	3,317
ABS issued		7,564,312	8,843,147
Fair Value, Measurements, Recurring | Residential Loans
Assets
Residential loans		5,752,524	7,592,398
Fair Value, Measurements, Recurring | Level 1
Assets
Business purpose loans		0	0
Consolidated Agency multifamily loans		0	0
Real estate securities, at fair value		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		39,843	2,906
FHLBC stock			0
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		6,547	1,563
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 1 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 2
Assets
Business purpose loans		0	0
Consolidated Agency multifamily loans		0	0
Real estate securities, at fair value		0	0
Servicer advance investments		0	0
MSRs		0	0
Excess MSRs		0	0
HEIs		0	0
Other investments		0	0
Derivative assets		24,626	18,928
FHLBC stock			10
Liabilities
HEI securitization non-controlling interest		0	0
Derivative liabilities		23	1,251
ABS issued		0	0
Fair Value, Measurements, Recurring | Level 2 | Residential Loans
Assets
Residential loans		0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Business purpose loans		5,257,218	4,790,989
Consolidated Agency multifamily loans		427,458	473,514
Real estate securities, at fair value		259,212	377,411
Servicer advance investments		274,934	350,923
MSRs		24,796	12,438
Excess MSRs		40,452	44,231
HEIs		340,437	192,740
Other investments		11,174	17,574
Derivative assets		744	4,633
FHLBC stock			0
Liabilities
HEI securitization non-controlling interest		24,355	17,035
Derivative liabilities		212	503
ABS issued		7,564,312	8,843,147
Fair Value, Measurements, Recurring | Level 3 | Residential Loans
Assets
Residential loans		$ 5,752,524	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
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 (loss), net		7,320
Other settlements, net		0
Ending balance - September 30, 2022	$ 24,355	24,355
ABS Issued
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021		8,843,147
Acquisitions		1,205,289
Principal paydowns		(1,242,859)
Gains (losses) in net income (loss), net		(1,241,265)
Other settlements, net		0
Ending balance - September 30, 2022	7,564,312	7,564,312
Residential Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021		7,592,398
Acquisitions		3,585,882
Originations		0
Sales		(3,702,359)
Principal paydowns		(734,577)
Gains (losses) in net income (loss), net		(985,958)
Unrealized losses in OCI, net		0
Other settlements, net		(2,862)
Ending balance - September 30, 2022	5,752,524	5,752,524
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		181,814
Originations		2,291,192
Sales		(414,998)
Principal paydowns		(1,086,983)
Gains (losses) in net income (loss), net		(503,832)
Unrealized losses in OCI, net		0
Other settlements, net		(964)
Ending balance - September 30, 2022	5,257,218	5,257,218
Consolidated Agency 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		(5,936)
Gains (losses) in net income (loss), net		(40,120)
Unrealized losses in OCI, net		0
Other settlements, net		0
Ending balance - September 30, 2022	427,458	427,458
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		(27,471)
Principal paydowns		(1,202)
Gains (losses) in net income (loss), net		(30,019)
Unrealized losses in OCI, net		0
Other settlements, net		0
Ending balance - September 30, 2022	116,933	116,933
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		(25,381)
Gains (losses) in net income (loss), net		12,560
Unrealized losses in OCI, net		(61,692)
Other settlements, net		0
Ending balance - September 30, 2022	142,279	142,279
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		(65,772)
Gains (losses) in net income (loss), net		(10,217)
Unrealized losses in OCI, net		0
Other settlements, net		0
Ending balance - September 30, 2022	274,934	274,934
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 (loss), net		(3,779)
Unrealized losses in OCI, net		0
Other settlements, net		0
Ending balance - September 30, 2022	40,452	40,452
HEIs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021		192,740
Acquisitions		176,439
Originations		0
Sales		0
Principal paydowns		(35,187)
Gains (losses) in net income (loss), net		6,445
Unrealized losses in OCI, net		0
Other settlements, net		0
Ending balance - September 30, 2022	340,437	340,437
MSRs
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance - December 31, 2021		25,101
Acquisitions	0	8,293
Originations		0
Sales		(3,044)
Principal paydowns		(137)
Gains (losses) in net income (loss), net		9,336
Unrealized losses in OCI, net		0
Other settlements, net		(3,579)
Ending balance - September 30, 2022	35,970	35,970
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 (loss), net		(53,962)
Other settlements, net		(50,364)
Ending balance - September 30, 2022	$ 532	$ 532

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Portion of Net Gains (Losses) Attributable to Level 3 Assets and Liabilities Still Held Included in Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
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	$ (212)	$ (2,570)	$ (212)	$ (2,550)
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	1,068	(83)	(7,320)	(83)
Point Entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	(1,652)	47	11,348	129
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	(28,762)	6,553	(42,952)	9,371
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	(11,264)	2,885	(22,467)	11,779
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	(41,969)	13,781	(75,043)	54,006
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	(10,967)	18,810	(39,019)	19,829
Consolidated Agency multifamily loans | Freddie Mac K-Series
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gains (losses) attributable to level 3 assets still held included in net income	316	555	390	11,330
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	(6,585)	2,943	(24,365)	5,500
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	(12,668)	1,547	(34,104)	3,824
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	(3,905)	(2,079)	(10,218)	(3,179)
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	1,653	(235)	9,118	(49)
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	(351)	(803)	(3,779)	(5,233)
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	(4,903)	(41)	(2,272)	21
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	$ 723	$ 9,021	$ 744	$ 9,261

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 - Strategic investments $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Strategic investments	$ 17,350	$ 17,350
Gain (Loss) on assets measured at fair value on a non-recurring basis	(25)	10,000
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Strategic investments	0	0
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Strategic investments	0	0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Strategic investments	$ 17,350	$ 17,350

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Market Valuation Adjustments, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ 2,890	$ 295	$ 12,569	$ 949
Total Market Valuation Gains (Losses), Net	(50,893)	78,415	(183,487)	292,056
Mortgage Banking Activities, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	6,420	53,327	(38,877)	174,648
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	(20,060)	9,045	(71,776)	57,145
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	(2,716)	18,817	(53,236)	18,351
Mortgage Banking Activities, Net | Single-family rental loans held-for-sale, at fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(19,325)	19,205	(83,827)	54,675
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	19	(744)	(666)	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	(9)	3,433	2,242	6,702
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	148	32	4,249	(342)
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	48,363	3,539	164,137	38,117
Investment Fair Value Changes, Net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value of assets	(57,697)	26,077	(151,789)	120,644
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	(12,668)	1,546	(34,268)	25,067
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	27,241	0	33,609	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	(6,614)	816	(18,876)	2,423
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	2,482	900	(9,220)	4,142
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	(3,905)	(2,079)	(10,217)	(3,179)
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	(351)	(803)	(3,779)	(5,233)
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	(328)	(247)	(1,378)	(1,162)
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	(10,936)	3,314	(20,644)	13,118
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	(41,892)	13,849	(74,796)	54,282
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	316	554	390	11,330
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	(6,585)	2,943	(24,365)	6,354
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	(584)	47	4,028	47
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	(4,774)	5,622	(1,986)	13,017
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	1,445	(385)	12,028	50
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	(544)	0	(2,315)	388
Other Income
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	384	(989)	7,179	(3,236)
Other Income | MSRs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	1,236	(989)	8,031	(3,236)
Other Income | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Income	$ (852)	$ 0	$ (852)	$ 0

Fair Value of Financial Inst_10

Fair Value of Financial Instruments - Quantitative Information about Significant Unobservable Inputs Used in Valuation of Level 3 Assets and Liabilities Measured at Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / loan	Dec. 31, 2021 USD ($)
Assets
ABS issued, net, At fair value | $	$ 7,564,312	$ 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 | $	$ 3,210,603
ABS Issued | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.05
ABS Issued | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.24
ABS Issued | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.13
ABS Issued | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.04
ABS Issued | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.18
ABS Issued | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
ABS Issued | Default rate | Minimum
Liabilities
ABS issued, measurement input	0
ABS Issued | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.33
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 | $	$ 2,703,223
CAFL | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0
CAFL | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.03
CAFL | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.002
CAFL | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.003
CAFL | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.16
CAFL | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
CAFL | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.04
CAFL | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.21
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	0.40
CAFL | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.30
Freddie Mac SLST
Liabilities
ABS issued | $	$ 1,150,323
Freddie Mac SLST | Prepayment rate (annual CPR) | Minimum
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Prepayment rate (annual CPR) | Maximum
Liabilities
ABS issued, measurement input	0.08
Freddie Mac SLST | Prepayment rate (annual CPR) | Weighted Average
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Whole loan discount rate | Minimum
Liabilities
ABS issued, measurement input	0.05
Freddie Mac SLST | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.08
Freddie Mac SLST | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.06
Freddie Mac SLST | Default rate | Minimum
Liabilities
ABS issued, measurement input	0.13
Freddie Mac SLST | Default rate | Maximum
Liabilities
ABS issued, measurement input	0.14
Freddie Mac SLST | Default rate | Weighted Average
Liabilities
ABS issued, measurement input	0.14
Freddie Mac SLST | Loss severity | Minimum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Maximum
Liabilities
ABS issued, measurement input	0.35
Freddie Mac SLST | Loss severity | Weighted Average
Liabilities
ABS issued, measurement input	0.35
Freddie Mac K-Series
Liabilities
ABS issued | $	$ 395,411
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	0.09
Freddie Mac K-Series | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.05
Consolidated Point Entities
Liabilities
ABS issued | $	$ 104,751
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	0.09
Consolidated Point Entities | Whole loan discount rate | Maximum
Liabilities
ABS issued, measurement input	0.15
Consolidated Point Entities | Whole loan discount rate | Weighted Average
Liabilities
ABS issued, measurement input	0.10
Consolidated Point Entities | Home price appreciation | Minimum
Liabilities
ABS issued, measurement input	(0.07)
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, At fair value | $	$ 718,347
Jumbo fixed-rate loans | Whole loan spread to swap rate | Minimum
Assets
Loans held-for-sale, measurement input	0.0201
Jumbo fixed-rate loans | Whole loan spread to swap rate | Maximum
Assets
Loans held-for-sale, measurement input	0.0400
Jumbo fixed-rate loans | Whole loan spread to swap rate | Weighted Average
Assets
Loans held-for-sale, measurement input	0.0202
Jumbo fixed-rate loans | CRT dollar price | Minimum
Assets
Loans held-for-sale, measurement input	92
Jumbo fixed-rate loans | CRT dollar price | Maximum
Assets
Loans held-for-sale, measurement input	92
Jumbo fixed-rate loans | CRT dollar price | Weighted Average
Assets
Loans held-for-sale, measurement input	92
Jumbo loans committed to sell
Assets
Loans receivable, fair value | $	$ 115,883
Jumbo loans committed to sell | Whole loan committed sales price | Minimum
Assets
Loans held-for-sale, measurement input	96
Jumbo loans committed to sell | Whole loan committed sales price | Maximum
Assets
Loans held-for-sale, measurement input	102
Jumbo loans committed to sell | Whole loan committed sales price | Weighted Average
Assets
Loans held-for-sale, measurement input	98
Legacy Sequoia
Assets
Loans receivable, fair value | $	$ 198,160
Sequoia
Assets
Loans receivable, fair value | $	3,237,170
Liabilities
Fair value of securities owned | $	224,000
Freddie Mac SLST
Assets
Loans receivable, fair value | $	1,482,964
Liabilities
Fair value of securities owned | $	335,000	445,000
Single-family rental loans
Assets
Loans receivable, fair value | $	$ 281,105
Single-family rental loans | Senior credit spread | Minimum
Assets
Loans receivable, measurement input	0.0210
Single-family rental loans | Senior credit spread | Maximum
Assets
Loans receivable, measurement input	0.0210
Single-family rental loans | Senior credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0210
Single-family rental loans | Subordinate credit spread | Minimum
Assets
Loans receivable, measurement input	0.0275
Single-family rental loans | Subordinate credit spread | Maximum
Assets
Loans receivable, measurement input	0.1025
Single-family rental loans | Subordinate credit spread | Weighted Average
Assets
Loans receivable, measurement input	0.0458
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	0.36
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	0.09
Single-family rental loans | IO discount rate | Weighted Average
Assets
Loans receivable, measurement input	0.08
Single-family rental loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans receivable, measurement input	0.03
Single-family rental loans | Whole loan dollar price | Minimum
Assets
Loans receivable, measurement input	84
Single-family rental loans | Whole loan dollar price | Maximum
Assets
Loans receivable, measurement input	99
Single-family rental loans | Whole loan dollar price | Weighted Average
Assets
Loans receivable, measurement input	86
CAFL
Assets
Loans receivable, fair value | $	$ 3,018,994
Liabilities
Fair value of securities owned | $	314,000	$ 302,000
Bridge loans
Assets
Loans receivable, fair value | $	$ 1,957,119
Bridge loans | Senior credit spread | Minimum
Assets
Loans held-for-investment, measurement input	0.0285
Bridge loans | Senior credit spread | Maximum
Assets
Loans held-for-investment, measurement input	0.0285
Bridge loans | Senior credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	0.0285
Bridge loans | Subordinate credit spread | Minimum
Assets
Loans held-for-investment, measurement input	3.45
Bridge loans | Subordinate credit spread | Maximum
Assets
Loans held-for-investment, measurement input	12
Bridge loans | Subordinate credit spread | Weighted Average
Assets
Loans held-for-investment, measurement input	6.80
Bridge loans | Senior credit support | Minimum
Assets
Loans held-for-investment, measurement input	0.43
Bridge loans | Senior credit support | Maximum
Assets
Loans held-for-investment, measurement input	0.43
Bridge loans | Senior credit support | Weighted Average
Assets
Loans held-for-investment, measurement input	0.43
Bridge loans | Prepayment rate (annual CPR) | Minimum
Assets
Loans held-for-investment, measurement input	0
Bridge loans | Prepayment rate (annual CPR) | Maximum
Assets
Loans held-for-investment, measurement input	0
Bridge loans | Prepayment rate (annual CPR) | Weighted Average
Assets
Loans held-for-investment, measurement input	0
Bridge loans | Whole loan discount rate | Minimum
Assets
Loans held-for-investment, measurement input	0.05
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	0.09
Freddie Mac K-Series
Assets
Loans receivable, fair value | $	$ 427,458
Liabilities
Fair value of securities owned | $	32,000
Trading and AFS securities
Assets
Trading and AFS securities | $	$ 259,212
Trading and AFS securities | CRT dollar price | Minimum
Assets
Trading and AFS securities	73
Trading and AFS securities | CRT dollar price | Maximum
Assets
Trading and AFS securities	93
Trading and AFS securities | CRT dollar price | Weighted Average
Assets
Trading and AFS securities	85
Trading and AFS securities | Prepayment rate (annual CPR) | Minimum
Assets
Trading and AFS securities	0.06
Trading and AFS securities | Prepayment rate (annual CPR) | Maximum
Assets
Trading and AFS securities	0.65
Trading and AFS securities | Prepayment rate (annual CPR) | Weighted Average
Assets
Trading and AFS securities	0.12
Trading and AFS securities | Whole loan discount rate | Minimum
Assets
Trading and AFS securities	0.05
Trading and AFS securities | Whole loan discount rate | Maximum
Assets
Trading and AFS securities	0.18
Trading and AFS securities | Whole loan discount rate | Weighted Average
Assets
Trading and AFS securities	0.10
Trading and AFS securities | Default rate | Minimum
Assets
Trading and AFS securities	0
Trading and AFS securities | Default rate | Maximum
Assets
Trading and AFS securities	0.12
Trading and AFS securities | Default rate | Weighted Average
Assets
Trading and AFS securities	0.004
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 | $	$ 274,934
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	0.14
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	0.05
Servicer Advance Investments | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.04
Servicer Advance Investments | Mortgage servicing income | Minimum
Assets
Servicing asset, measurement input	0
Servicer Advance Investments | Mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0018
Servicer Advance Investments | Mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0007
MSRs
Assets
Servicing asset | $	$ 24,796
MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.04
MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	0.28
MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.08
MSRs | Whole loan discount rate | Minimum
Assets
Servicing asset, measurement input	0.11
MSRs | Whole loan discount rate | Maximum
Assets
Servicing asset, measurement input	0.69
MSRs | Whole loan discount rate | Weighted Average
Assets
Servicing asset, measurement input	0.11
MSRs | Per loan annual cost to service | Minimum
Assets
Servicing asset, measurement input	93
MSRs | Per loan annual cost to service | Maximum
Assets
Servicing asset, measurement input	93
MSRs | Per loan annual cost to service | Weighted Average
Assets
Servicing asset, measurement input	93
Excess MSRs
Assets
Servicing asset | $	$ 40,452
Excess MSRs | Prepayment rate (annual CPR) | Minimum
Assets
Servicing asset, measurement input	0.10
Excess MSRs | Prepayment rate (annual CPR) | Maximum
Assets
Servicing asset, measurement input	1
Excess MSRs | Prepayment rate (annual CPR) | Weighted Average
Assets
Servicing asset, measurement input	0.18
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	0.0008
Excess MSRs | Excess mortgage servicing income | Maximum
Assets
Servicing asset, measurement input	0.0019
Excess MSRs | Excess mortgage servicing income | Weighted Average
Assets
Servicing asset, measurement input	0.0011
Home Appreciation Option
Assets
HEIs | $	$ 200,709
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	0.23
Home Appreciation Option | Prepayment rate (annual CPR) | Weighted Average
Assets
HEIs, Measurement input	0.16
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	(0.07)
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 | $	$ 139,728
Residential loan purchase commitments, net
Assets
Loan purchase commitments, net | $	$ 531
Residential loan purchase commitments, net | Whole loan spread to swap rate | Minimum
Assets
Loans receivable, measurement input	0.0201
Residential loan purchase commitments, net | Whole loan spread to swap rate | Maximum
Assets
Loans receivable, measurement input	0.0201
Residential loan purchase commitments, net | Whole loan spread to swap rate | Weighted Average
Assets
Loans receivable, measurement input	0.0201
Residential loan purchase commitments, net | Pull-through rate | Minimum
Assets
Loans receivable, measurement input	0.26
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	0.78
Residential loan purchase commitments, net | Committed sales price | Minimum
Assets
Loans receivable, measurement input	99
Residential loan purchase commitments, net | Committed sales price | Maximum
Assets
Loans receivable, measurement input	102
Residential loan purchase commitments, net | Committed sales price | Weighted Average
Assets
Loans receivable, measurement input	100

Residential Loans - Summary of

Residential Loans - Summary of Classifications and Carrying Value of Residential Loans (Details) - USD ($) $ in Thousands		Sep. 30, 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]	$ 834,262	$ 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		198,160	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		3,237,170	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		1,482,964	1,888,230
Servicer advance investments
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		5,752,556	7,592,432
Servicer advance investments | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		198,160	230,455
Servicer advance investments | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,237,170	3,628,465
Servicer advance investments | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,482,964	1,888,230
Servicer advance investments | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		834,262	1,845,282
Servicer advance investments | Held-for-sale at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Servicer advance investments | Held-for-sale at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Servicer advance investments | Held-for-sale at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		0	0
Servicer advance investments | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		4,918,294	5,747,150
Servicer advance investments | Held-for-investment at fair value | Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		198,160	230,455
Servicer advance investments | Held-for-investment at fair value | Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		3,237,170	3,628,465
Servicer advance investments | Held-for-investment at fair value | Freddie Mac SLST
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		1,482,964	1,888,230
Servicer advance investments | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		834,262	1,845,282
Servicer advance investments | Redwood | Held-for-sale at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		834,262	1,845,282
Servicer advance investments | Redwood | Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Residential Loans - Additional

Residential Loans - Additional Information (Details) $ in Millions	Sep. 30, 2022 USD ($)
MSRs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage servicing rights, at amortized cost	$ 853

Residential Loans - Characteris

Residential Loans - Characteristics of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,054,000	2,196
Unpaid principal balance	$ 874,412	$ 1,813,865
Fair value of loans	834,262	1,845,282
Market value of loans pledged as collateral under short-term borrowing agreements	$ 828,192	$ 1,838,797
Weighted average coupon (as a percent)	4.99%	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]
Number of loans with 90+ day delinquencies | loan	1	3
Unpaid principal balance of loans with 90+ day delinquencies	$ 209	$ 2,923
Fair value of loans with 90+ day delinquencies	$ 170	$ 2,304

Residential Loans - Quarterly A

Residential Loans - Quarterly Activity of Residential Loans Held-for-Sale (Details) - Residential Loans $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) securitization	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) securitization	Sep. 30, 2021 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 336,698	$ 3,167,186	$ 3,597,339	$ 9,747,867
Principal balance of loans sold	662,302	2,360,862	3,727,993	6,787,490
Principal balance of loans transferred to HFI	0	448,878	687,192	1,623,000
Net market valuation gains (losses) recorded	(26,674)	$ 9,861	(90,652)	$ 59,568
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 0		$ 102,000
Number of seasoned securities | securitization	0		3

Residential Loans - Character_2

Residential Loans - Characteristics of Loans Held-for-Investment (Details) - Held-for-investment at fair value $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Legacy Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1,372	1,583
Unpaid principal balance	$ 218,298	$ 264,057
Fair value of loans	$ 198,160	$ 230,455
Weighted average coupon (as a percent)	3.23%	1.87%
Number of loans in foreclosure | loan	16	10
Unpaid principal balance of loans in foreclosure	$ 1,852	$ 2,188
Sequoia
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	4,666	4,300
Unpaid principal balance	$ 3,902,938	$ 3,605,469
Fair value of loans	$ 3,237,170	$ 3,628,465
Weighted average coupon (as a percent)	3.25%	3.39%
Number of loans in foreclosure | loan	6	2
Unpaid principal balance of loans in foreclosure	$ 5,928	$ 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	11,054	11,986
Unpaid principal balance	$ 1,753,301	$ 1,932,241
Fair value of loans	$ 1,482,964	$ 1,888,230
Weighted average coupon (as a percent)	4.50%	4.51%
Number of loans in foreclosure | loan	332	241
Unpaid principal balance of loans in foreclosure	$ 56,755	$ 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	33	32
Fair value of loans with 90+ day delinquencies	$ 5,532	$ 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	13	18
Fair value of loans with 90+ day delinquencies	$ 11,404	$ 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	1,295	1,208
Fair value of loans with 90+ day delinquencies	$ 223,260	$ 212,961

Residential Loans - Quarterly_2

Residential Loans - Quarterly Activity of Residential Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 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			$ 2,643,027	$ 3,005,041
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)	$ (202,825)	$ (11,663)	(685,042)	(27,076)
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)	(104,040)	(13,836)	(224,543)	5,177
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)	5,182	(2,580)	12,286	9,896
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	$ 0	$ 464,189	$ 684,491	$ 1,669,683

Business Purpose Loans - Classi

Business Purpose Loans - Classifications and Carrying Values of Business Purpose Residential Loans (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	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%
LIBOR
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	39%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	48%
Fixed Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Real estate owned, rate (as a percent)	13%
Commitment To Fund Residential Bridge Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commitment to fund loan	$ 990,000
Bridge Loans | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)	6 months
Bridge Loans | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential bridge loans held-for-investment, original maturities (in months)	36 months
Held-for-sale at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 337,238	$ 358,309
Held-for-investment at fair value, Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	4,919,980	4,432,680
Business Purpose Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	5,257,218	4,790,989
Redwood | Single-family rental loans, held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	281,105	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	281,105	358,309
Redwood | Residential Bridge, Held-for-sale at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	56,133	0
Redwood | Bridge loans held-for-investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,388,750	666,364
Redwood | Residential bridge loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	1,444,883	666,364
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	3,018,994	3,488,074
CAFL | Single family rental loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	3,018,994	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	512,236	278,242
CAFL | Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans	$ 512,236	$ 278,242

Business Purpose Loans - Activi

Business Purpose Loans - Activity and Characteristics of Business Purpose Loans (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans			$ 3,734,972	$ 9,902,028
Principal balance of loans sold to third parties			26,584	46,904
Fair value of loans transferred			2,643,027	3,005,041
Transfers from loans held-for-investment to loans held-for-sale			0	44,922
Redwood | Riverbend Acquisition
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal balance of loans acquired	$ 60,000
Single-family rental loans, held-for-sale | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	99,281	$ 392,620	865,253	957,935
Principal balance of loans acquired	0	2,463	100,349	2,463
Principal balance of loans sold to third parties	37,202	0	368,704	0
Fair value of loans transferred	266,181	332,670	561,218	799,375
Transfers from loans held-for-investment to loans held-for-sale			0	44,922
Gain (loss) on investments	0	0	0	0
Fair value of loans	281,105		281,105		$ 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	(19,325)	19,205	(83,827)	54,675
Bridge loans held-for-investment | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Purchases of held-for-sale loans	470,425	208,938	1,424,604	557,327
Principal balance of loans acquired	59,977	35,713	81,983	35,713
Principal balance of loans sold to third parties	48,279	253	48,279	9,484
Fair value of loans transferred	77,362	276,354	465,966	276,354
Transfers from loans held-for-investment to loans held-for-sale			0
Gain (loss) on investments	(679)	900	(6,747)	4,142
Fair value of loans	1,388,750		1,388,750		666,364
Bridge loans held-for-investment | 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	(110)	3,691	1,129	5,212
Business Purpose Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fee income	10,000		36,000
Fair value of loans	5,257,218		5,257,218		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		$ 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	(108,980)	(34,803)	$ (419,182)	(96,934)
Number of loans | loan			1,142		1,173
Unpaid principal balance	3,316,706		$ 3,316,706		$ 3,340,949
Fair value of loans	$ 3,018,994		$ 3,018,994		$ 3,488,074
Weighted average coupon rate (as a percent)	5.22%		5.22%		5.17%
Weighted average remaining loan term (years)			6 years		6 years
Fair value of loans with 90+ day delinquencies	$ 10,335		$ 10,335		$ 12,648
Number of loans in foreclosure | loan	7		7		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	15		15		18
Fair value of loans with 90+ day delinquencies	$ 31,296		$ 31,296		$ 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	1,906	$ 0	$ 50	$ 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			202		245
Unpaid principal balance	317,556		$ 317,556		$ 348,232
Fair value of loans	$ 281,105		$ 281,105		$ 358,309
Weighted average coupon rate (as a percent)	5.14%		5.14%		4.73%
Weighted average remaining loan term (years)			15 years		12 years
Fair value of loans with 90+ day delinquencies	$ 536		$ 536		$ 5,473
Number of loans in foreclosure | loan	1		1		7
Unpaid principal balance of loans in foreclosure	$ 528		$ 528		$ 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			279,846		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			0		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	$ 528		$ 528		$ 4,238
Number of loans with 90+ day delinquencies | loan	1		1		6
Fair value of loans with 90+ day delinquencies	$ 536		$ 536		$ 5,384
Business Purpose Bridge Loans | Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan			1,585		1,134
Unpaid principal balance	1,452,180		$ 1,452,180		$ 670,392
Fair value of loans	$ 1,444,883		$ 1,444,883		$ 666,364
Weighted average coupon rate (as a percent)	8.06%		8.06%		6.91%
Weighted average remaining loan term (years)			2 years		1 year
Fair value of loans with 90+ day delinquencies	$ 33,471		$ 33,471		$ 18,043
Number of loans in foreclosure | loan	49		49		28
Unpaid principal balance of loans in foreclosure	$ 30,789		$ 30,789		$ 14,257
Business Purpose Bridge Loans | Redwood | Loans Pledged As Collateral, Short Term Debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments			702,899		91,814
Business Purpose Bridge Loans | Redwood | Loans Pledged As Collateral, Long Term debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Gain (loss) on investments			699,704		554,597
Business Purpose Bridge Loans | Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	$ 31,140		$ 31,140		$ 14,218
Number of loans with 90+ day delinquencies | loan	51		51		31
Fair value of loans with 90+ day delinquencies	$ 33,822		$ 33,822		$ 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			1,994		1,640
Unpaid principal balance	510,839		$ 510,839		$ 274,617
Fair value of loans	$ 512,236		$ 512,236		$ 278,242
Weighted average coupon rate (as a percent)	8.04%		8.04%		7.05%
Weighted average remaining loan term (years)			1 year		1 year
Fair value of loans with 90+ day delinquencies	$ 0		$ 0		$ 0
Number of loans in foreclosure | loan	0		0		0
Unpaid principal balance of loans in foreclosure	$ 0		$ 0		$ 0
Business Purpose Bridge Loans | CAFL | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Fair value of loans	$ 7,144		$ 7,144		$ 0
Number of loans with 90+ day delinquencies | loan	47		47		0
Fair value of loans with 90+ day delinquencies	$ 7,063		$ 7,063		$ 0

Consolidated Agency Multifami_3

Consolidated Agency Multifamily Loans (Details) - Consolidated Agency multifamily loans, at fair value $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) loan
Held-for-investment at fair value
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net market valuation gain (loss) | $	$ (13,691)	$ (487)	$ (40,120)	$ (3,745)
Redwood
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan			28		28
Unpaid principal balance | $	449,232		$ 449,232		$ 455,168
Fair value of loans | $	$ 427,458		$ 427,458		$ 473,514
Weighted average coupon rate (as a percent)	4.25%		4.25%		4.25%
Weighted average remaining loan term (years)			3 years		4 years
Number of loans in foreclosure | loan	0		0		0
Redwood | Financing Receivables, Equal to Greater than 90 Days Past Due
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans with 90+ day delinquencies | loan	0		0		0

Real Estate Securities - Fair V

Real Estate Securities - Fair Values of Real Estate Securities (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Trading		$ 116,933	$ 170,619
Available-for-sale		142,279	206,792
Total Real Estate Securities	[1]	$ 259,212	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 116,933		$ 116,933		$ 170,619
Unpaid principal balance	220,888		220,888		235,306
Principal balance of securities acquired (1)	0	$ 10,750	0	$ 28,380
Principal balance of securities sold (1)	0	750	12,716	53,561
Net market valuation gains (losses) recorded	(12,521)	1,578	(30,019)	24,725
Securities bought and sold during the same quarter		$ 1,000		$ 3,000
Senior IO Securities
Investment Holdings [Line Items]
Real estate securities, at fair value	28,860		28,860		21,787
Unpaid principal balance	0		0		0
Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	88,073		88,073		148,832
Unpaid principal balance	220,888		220,888		235,306
Interest Only Senior Trading Securities | Senior IO Securities
Investment Holdings [Line Items]
Real estate securities, at fair value	28,860		28,860		21,787
Interest Only Senior Trading Securities | Senior IO Securities | Sequoia
Investment Holdings [Line Items]
Real estate securities, at fair value	25,000		25,000		15,000
RPL securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	31,963		31,963		65,140
Consolidated Agency multifamily loans, at fair value | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	8,021		8,021		10,549
Other third-party residential securities | Subordinate
Investment Holdings [Line Items]
Real estate securities, at fair value	$ 48,089		$ 48,089		$ 73,143

Real Estate Securities - Availa

Real Estate Securities - Available for Sale Securities by Collateral Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investment Holdings [Line Items]
Available-for-sale	$ 142,279		$ 142,279		$ 206,792
Fair value of securities acquired	0	$ 0	10,000	$ 1,600
Fair value of securities sold	0	0	0	4,785
Principal balance of securities called	0	11,565	14,486	25,970
Net unrealized (loss) gain on available-for-sale securities	(8,731)	$ (2,658)	(60,013)	$ 19,552
Sequoia securities
Investment Holdings [Line Items]
Available-for-sale	78,065		78,065		127,542
Consolidated Agency multifamily loans, at fair value
Investment Holdings [Line Items]
Available-for-sale	13,211		13,211		22,166
Other third-party residential securities
Investment Holdings [Line Items]
Available-for-sale	51,003		51,003		57,084
Total Subordinate Investment Securities
Investment Holdings [Line Items]
Available-for-sale	$ 142,279		$ 142,279		$ 206,792

Real Estate Securities - Additi

Real Estate Securities - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) entity investment	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($) investment
Investment Holdings [Line Items]
Number of AFS securities (in investments) | investment	81		85
Number of securities in unrealized loss position | investment	35		4
Number of securities in a continuous unrealized loss position for twelve consecutive months or longer (in investments) | investment	1		1
Gross unrealized losses	$ 10,876		$ 297
CECL credit allowance	$ 2,315	$ 1,771	0
Variable Interest Entity, Not Primary Beneficiary
Investment Holdings [Line Items]
Number of entities called | entity	3
Unpaid principal balance of loans purchased	$ 102,000
Realized gain on securities	300
Residential
Investment Holdings [Line Items]
AFS securities, contractual maturities, less than five years	10,000
Marketable securities, due from five to ten years	1,000
CECL credit allowance	$ 30,247	$ 30,619	$ 27,555

Real Estate Securities - Compon

Real Estate Securities - Components of Carrying Value (Which Equals Fair Value) of Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Principal balance	$ 227,715		$ 242,852
Credit reserve	(30,247)		(27,555)
Unamortized discount, net	(61,015)		(76,023)
Amortized cost	136,453		139,274
Gross unrealized gains	19,017		67,815
Gross unrealized losses	(10,876)		(297)
CECL allowance	(2,315)	$ (1,771)	0
Carrying Value	$ 142,279		$ 206,792

Real Estate Securities - Change

Real Estate Securities - Changes of Unamortized Discount and Designated Credit Reserves on Residential Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Credit Reserve
Beginning balance	$ 1,771	$ 0
Sales, calls, other	0	0
Ending Balance	2,315	2,315
Unamortized Discount, Net
Beginning balance		76,023
Ending Balance	61,015	61,015
Residential
Credit Reserve
Beginning balance	30,619	27,555
Amortization of net discount	0	0
Realized credit recoveries (losses), net	170	244
Acquisitions	0	0
Sales, calls, other	0	(343)
Transfers to (release of) credit reserves, net	(542)	2,791
Ending Balance	30,247	30,247
Unamortized Discount, Net
Beginning balance	61,303	76,023
Amortization of net discount	(830)	(10,647)
Realized credit recoveries (losses), net	0	0
Acquisitions	0	0
Sales, calls, other	0	(1,570)
Transfers to (release of) credit reserves, net	542	(2,791)
Ending Balance	$ 61,015	$ 61,015

Real Estate Securities - Comp_2

Real Estate Securities - Components of Carrying Value of Residential Available for Sale Securities in Unrealized Loss Position (Details) - Residential - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Less Than 12 Consecutive Months, Fair Value	$ 65,585	$ 6,827
Less Than 12 Consecutive Months, Unrealized Losses	(10,685)	(251)
12 Consecutive Months or Longer, Fair Value	1,409	1,554
12 Consecutive Months or Longer, Unrealized Losses	$ (191)	$ (46)

Real Estate Securities - Summar

Real Estate Securities - Summary of Significant Valuation Assumptions for Available for Sale Securities Credit Loss (Details) - Subordinate Securities	9 Months Ended
	Sep. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Default rate	0.80%
Loss severity	20%

Real Estate Securities - Activi

Real Estate Securities - Activity of Allowance for Credit Losses for Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Rollforward of Allowance for Credit Losses
Beginning balance	$ 1,771	$ 0
Additions to allowance for credit losses on securities for which credit losses were not previously recorded	30	1,520
Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	514	795
Allowance on purchased financial assets with credit deterioration	0	0
Reduction to allowance for securities sold during the period	0	0
Reduction to allowance for securities we intend to sell or more likely than not will be required to sell	0	0
Write-offs charged against allowance	0	0
Recoveries of amounts previously written off	0	0
Ending Balance	$ 2,315	$ 2,315

Real Estate Securities - Gross

Real Estate Securities - Gross Realized Gains and Losses on Sales and Calls of Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Securities, Available-for-sale [Line Items]
Total Realized Gains on Sales and Calls of AFS Securities, net	$ 0	$ 6,389	$ 1,914	$ 16,991
Sales
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	0	0	0	1,507
Gross realized losses - sales	0	0	0	0
Calls
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	$ 0	$ 6,389	$ 1,914	$ 15,484

Home Equity Investments (HEI) -

Home Equity Investments (HEI) - Schedule of Home Equity Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 340,437	$ 192,740
HEIs at Redwood | Redwood
Schedule of Equity Method Investments [Line Items]
Home equity investments	200,709	33,187
HEIs at Redwood | HEIs held at consolidated HEI securitization entity
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 139,728	$ 159,553

Home Equity Investments (HEI)_2

Home Equity Investments (HEI) - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Home equity investments	$ 340,437		$ 340,437		$ 192,740
Investment fair value changes, net	(57,697)	$ 26,077	(151,789)	$ 120,644
Point HEI
Schedule of Equity Method Investments [Line Items]
Interest expense	1,000		3,000
Commitment To Acquire HEIs
Schedule of Equity Method Investments [Line Items]
Cumulative commitment	149,000		149,000
Commitment To Fund Investment | Point HEI
Schedule of Equity Method Investments [Line Items]
Investment fair value changes, net	(5,000)		(2,000)
Shared home appreciation options | Redwood
Schedule of Equity Method Investments [Line Items]
Home equity investments	200,709		200,709		33,187
Shared home appreciation options | Point HEI
Schedule of Equity Method Investments [Line Items]
Home equity investments	139,728		139,728		$ 159,553
Investment Fair Value Changes, Net
Schedule of Equity Method Investments [Line Items]
Investment fair value changes, net	$ (1,000)
Investment Fair Value Changes, Net | Point HEI
Schedule of Equity Method Investments [Line Items]
Investment fair value changes, net			$ 4,000

Other Investments - Summary of

Other Investments - Summary of Other Investments (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Net Investment Income [Line Items]
Home equity investments	[1]	$ 340,437	$ 192,740
Other Investments	[1]	412,762	449,229
Mortgage servicing rights
Net Investment Income [Line Items]
Mortgage servicing rights		24,796	12,438
Other
Net Investment Income [Line Items]
Other		973	5,935
Servicer advance investments
Net Investment Income [Line Items]
Mortgage servicing rights		274,934	350,923
Strategic investments
Net Investment Income [Line Items]
Mortgage servicing rights		71,607	35,702
Excess MSRs
Net Investment Income [Line Items]
Mortgage servicing rights		$ 40,452	$ 44,231
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.

Other Investments - Additional

Other Investments - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) investment	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) investment partnership	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Net Investment Income [Line Items]
Number of partnerships consolidated | partnership			2
Commitment to fund partnership	$ 148,000		$ 148,000		$ 148,000
Collateral amounts	1,124,750		1,124,750		1,306,932
Investment fair value changes, net	(57,697)	$ 26,077	(151,789)	$ 120,644
Investments	10,000		10,000
Other income, net	4,027	2,388	17,016	8,357
Interest income	177,662	$ 145,722	534,517	$ 412,722
Servicer advance financing
Net Investment Income [Line Items]
Collateral amounts	245,000		245,000
Equity investment income	5,000		15,000
Investment fair value changes, net	(4,000)		(10,000)
Held-for-sale residential loans
Net Investment Income [Line Items]
Mortgage servicing rights	274,934		274,934		350,923
Servicing asset, unpaid principal balance on underlying loan	11,680,000		11,680,000
Excess MSRs
Net Investment Income [Line Items]
Mortgage servicing rights	40,452		40,452		44,231
Investment fair value changes, net	(400)		(4,000)
Interest income	4,000		12,000
Fair value option elected aggregate carrying amount, asset	0		5,000
Strategic investments
Net Investment Income [Line Items]
Investment fair value changes, net	1,000		11,000
Other income, net	$ 300		$ 400
Strategic investments | RWT Horizons
Net Investment Income [Line Items]
Number of investments made | investment	27		27
Investments	$ 24,000		$ 24,000
Strategic investments | Churchill Finance
Net Investment Income [Line Items]
Number of investments made | investment	6,000		6,000
MSRs
Net Investment Income [Line Items]
Mortgage servicing rights	$ 24,796		$ 24,796		12,438
Aggregate principal balance	2,220,000		2,220,000		$ 2,120,000
MSR income (losses), net	$ 3,000		$ 13,000

Other Investments - Servicing A

Other Investments - Servicing Advance Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Investments [Line Items]
Total Servicer Advance Receivables	$ 245,181	$ 310,953
Servicer advance financing
Schedule of Investments [Line Items]
Principal and interest advances	89,816	94,148
Escrow advances (taxes and insurance advances)	117,971	172,847
Corporate advances	$ 37,394	$ 43,958

Derivative Financial Instrume_3

Derivative Financial Instruments - Aggregate Fair Value and Notional Amount of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value	$ 58,431	$ 23,150
Notional Amount	2,116,501	6,861,921
TBAs
Derivative [Line Items]
Notional Amount	820,000	3,310,000
Interest rate futures
Derivative [Line Items]
Notional Amount	682,000	72,000
Derivative Liabilities
Derivative [Line Items]
Fair Value	(6,782)	(3,317)
Notional Amount	323,844	1,619,790
Derivative Liabilities | Interest rate swaps
Derivative [Line Items]
Fair Value	(23)	(1,251)
Notional Amount	10,000	283,100
Derivative Liabilities | TBAs
Derivative [Line Items]
Fair Value	(6,545)	(658)
Notional Amount	255,000	870,000
Derivative Liabilities | Interest rate futures
Derivative [Line Items]
Fair Value	(2)	(905)
Notional Amount	300	62,500
Derivative Liabilities | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	(212)	(503)
Notional Amount	58,544	404,190
Derivative Assets
Derivative [Line Items]
Fair Value	65,213	26,467
Notional Amount	1,792,657	5,242,131
Derivative Assets | Interest rate swaps
Derivative [Line Items]
Fair Value	24,626	611
Notional Amount	459,000	161,500
Derivative Assets | TBAs
Derivative [Line Items]
Fair Value	13,568	2,880
Notional Amount	565,000	2,440,000
Derivative Assets | Interest rate futures
Derivative [Line Items]
Fair Value	26,275	25
Notional Amount	681,500	9,000
Derivative Assets | Swaptions
Derivative [Line Items]
Fair Value	0	18,318
Notional Amount	0	1,660,000
Derivative Assets | Residential loan purchase commitments, net
Derivative [Line Items]
Fair Value	744	4,633
Notional Amount	$ 87,157	$ 971,631

Derivative Financial Instrume_4

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Notional amount	$ 2,116,501		$ 2,116,501			$ 6,861,921
Accumulated other comprehensive income (loss)	1,154,242	$ 1,375,823	1,154,242	$ 1,375,823	$ 1,258,091	1,386,087	$ 1,295,142	$ 1,110,899
Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(73,343)	(77,470)	(73,343)	(77,470)	$ (74,383)	(76,430)	$ (78,511)	$ (80,557)
Cash Flow Hedging | Interest Rate Agreements Accounted for as Cash Flow Hedges
Derivative [Line Items]
Accumulated other comprehensive income (loss)	(73,000)		(73,000)			(76,000)
Interest Expense | Cash Flow Hedging
Derivative [Line Items]
Cash flow hedge loss to be reclassified over the next 12 months			4,000
Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	6,420	53,327	(38,877)	174,648
Loan purchase commitments and forward sales commitments | Mortgage Banking Activities, Net
Derivative [Line Items]
Market valuations gains (losses), net	(3,000)	18,000	(54,000)	18,000
Interest Rate Swap And Swaptions
Derivative [Line Items]
Notional amount	469,000		469,000
TBAs
Derivative [Line Items]
Notional amount	820,000		820,000			3,310,000
Interest rate futures
Derivative [Line Items]
Notional amount	682,000		682,000			72,000
Interest rate contract
Derivative [Line Items]
Notional amount	37,000		37,000			$ 2,100,000
Unsecuritized Residential and Commercial Loans
Derivative [Line Items]
Derivative gain (loss)	$ 76,000	$ 4,000	$ 198,000	$ 38,000

Derivative Financial Instrume_5

Derivative Financial Instruments - Impact on Interest Expense of Interest Rate Agreements Accounted for as Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative [Line Items]
Total interest expense	$ (142,727)	$ (103,754)	$ (405,992)	$ (314,371)
Cash Flow Hedging | Interest rate contract
Derivative [Line Items]
Net interest expense on cash flows hedges	0	0	0	0
Realized net losses reclassified from other comprehensive income	(1,040)	(1,041)	(3,086)	(3,086)
Total interest expense	$ (1,040)	$ (1,041)	$ (3,086)	$ (3,086)

Other Assets and Liabilities -

Other Assets and Liabilities - Components of Other Assets (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued interest receivable		$ 54,944	$ 47,515
Investment receivable		50,149	82,781
Deferred tax asset		20,867	20,867
Operating lease right-of-use assets		17,126	18,772
Income tax receivables		13,959	22
Fixed assets and leasehold improvements		12,411	9,019
Margin receivable		6,683	7,269
REO		3,683	36,126
Other		14,678	8,746
Total Other Assets	[1]	194,500	$ 231,117
Fixed assets		22,000
Accumulated depreciation		$ 9,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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		Sep. 30, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Payable to non-controlling interests		$ 47,487	$ 42,670
Accrued interest payable		46,938	39,297
Margin payable		30,389	24,368
Accrued compensation		23,488	74,636
Operating lease liabilities		19,533	20,960
Guarantee obligations		6,532	7,459
Residential loan and MSR repurchase reserve		5,754	9,306
Accrued operating expenses		4,956	4,377
Current accounts payable		4,722	8,273
Bridge loan holdbacks		3,930	3,109
Other		7,396	11,333
Accrued expenses and other liabilities	[1]	$ 201,125	$ 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 September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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	9 Months Ended
	Sep. 30, 2022 USD ($)
Other Real Estate [Roll Forward]
Balance at beginning of period	$ 36,126
Amount related to transfers into REO	4,034
Liquidations	(38,141)
Unrealized gain (loss) resulting from market valuation adjustments on REO	1,664
Balance at End of Period	3,683
Realized loss from liquidation	2,000
Legacy Sequoia
Other Real Estate [Roll Forward]
Balance at beginning of period	61
Amount related to transfers into REO	407
Liquidations	(505)
Unrealized gain (loss) resulting from market valuation adjustments on REO	443
Balance at End of Period	406
Freddie Mac SLST
Other Real Estate [Roll Forward]
Balance at beginning of period	2,028
Amount related to transfers into REO	2,664
Liquidations	(2,395)
Unrealized gain (loss) resulting from market valuation adjustments on REO	247
Balance at End of Period	2,544
CAFL
Other Real Estate [Roll Forward]
Balance at beginning of period	20,970
Amount related to transfers into REO	0
Liquidations	(20,970)
Unrealized gain (loss) resulting from market valuation adjustments on REO	0
Balance at End of Period	0
Bridge Loan
Other Real Estate [Roll Forward]
Balance at beginning of period	13,067
Amount related to transfers into REO	963
Liquidations	(14,271)
Unrealized gain (loss) resulting from market valuation adjustments on REO	974
Balance at End of Period	$ 733

Short-Term Debt - Outstanding B

Short-Term Debt - Outstanding Balances of Short-Term Debt by Type of Collateral Securing Debt (Details)		9 Months Ended	12 Months Ended
		Sep. 30, 2022 USD ($) facility	Dec. 31, 2021 USD ($) facility
Short-term Debt [Line Items]
Outstanding Balance	[1]	$ 2,110,279,000	$ 2,177,362,000
Facilities
Short-term Debt [Line Items]
Number of Facilities | facility		20	13
Outstanding Balance		$ 1,648,888,000	$ 1,882,915,000
Facilities | Residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		9	7
Outstanding Balance		$ 748,962,000	$ 1,669,344,000
Limit		$ 2,850,000,000	$ 2,900,000,000
Weighted Average Interest Rate (as a percent)		4.83%	1.87%
Weighted Average Days Until Maturity		150 days	153 days
Facilities | Business purpose residential loan warehouse
Short-term Debt [Line Items]
Number of Facilities | facility		4	2
Outstanding Balance		$ 775,491,000	$ 138,746,000
Limit		$ 1,750,000,000	$ 350,000,000
Weighted Average Interest Rate (as a percent)		5.67%	3.34%
Weighted Average Days Until Maturity		289 days	105 days
Facilities | Real estate securities repo
Short-term Debt [Line Items]
Number of Facilities | facility		7	4
Outstanding Balance		$ 124,435,000	$ 74,825,000
Limit		$ 0	$ 0
Weighted Average Interest Rate (as a percent)		3.50%	1.13%
Weighted Average Days Until Maturity		32 days	33 days
Servicer advance financing
Short-term Debt [Line Items]
Number of Facilities | facility		1	1
Outstanding Balance		$ 233,104,000	$ 294,447,000
Limit		$ 290,000,000	$ 350,000,000
Weighted Average Interest Rate (as a percent)		4.94%	1.90%
Weighted Average Days Until Maturity		397 days	306 days
Promissory notes
Short-term Debt [Line Items]
Outstanding Balance		$ 30,702,000
Weighted Average Interest Rate (as a percent)		6.58%
Convertible notes, net
Short-term Debt [Line Items]
Outstanding Balance		$ 197,585,000	$ 0
Weighted Average Interest Rate (as a percent)		4.75%
Weighted Average Days Until Maturity		319 days
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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	Sep. 30, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Total collateral for financing	$ 2,294,421	$ 2,450,304
Facilities
Short-term Debt [Line Items]
Total real estate securities owned	169,974	99,005
Other assets	4,116	1,962
Total collateral for financing	1,985,027	2,107,451
Servicer advance financing
Short-term Debt [Line Items]
Total collateral for financing	309,394	342,853
Cash	15,891	6,480
Restricted cash	18,569	25,420
Servicer advances	274,934	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	828,192	1,838,797
Business purpose loans | Facilities
Short-term Debt [Line Items]
Market value of loans pledged as collateral under short-term borrowing agreements	982,745	167,687
On balance sheet | Facilities
Short-term Debt [Line Items]
Available-for-sale securities pledged as collateral	60,457	5,823
Sequoia | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	77,470	61,525
Freddie Mac K-Series | Sequoia securities | Short Term Borrowing Agreement | Facilities
Short-term Debt [Line Items]
Trading securities pledged as collateral	$ 32,047	$ 31,657

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Aug. 31, 2022	Jul. 01, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Average balance of short-term debt	$ 1,640,000,000	$ 1,650,000,000
Accrued interest payable on short-term debt	5,000,000	5,000,000			$ 2,000,000
Committed line of credit	10,000,000	10,000,000
Fair market value of committed line of credit	1,000,000	1,000,000
Amount outstanding under credit facilities	0	0			0
Borrowings	1,546,934,000	1,546,934,000			1,650,576,000
Debt instrument, unamortized deferred issuance costs	12,708,000	12,708,000			9,743,000
Convertible notes
Short-term Debt [Line Items]
Debt instrument, unamortized deferred issuance costs			$ 1,000,000
4.75% convertible senior notes | Convertible notes
Short-term Debt [Line Items]
Borrowings	$ 199,000,000	$ 199,000,000			$ 198,629,000
Debt Instrument interest rate (as a percent)	4.75%	4.75%			4.75%
Debt instrument, unamortized deferred issuance costs					$ 1,836,000
Convertible notes
Short-term Debt [Line Items]
Debt instrument, unamortized deferred issuance costs	$ 1,000,000	$ 1,000,000
Riverbend Funding, LLC
Short-term Debt [Line Items]
Promissory notes				$ 43,000,000
Debt instrument, periodic payment, principal	12,000,000
Riverbend Funding, LLC | Minimum
Short-term Debt [Line Items]
Fixed interest rate (as a percentage)				6%
Riverbend Funding, LLC | Maximum
Short-term Debt [Line Items]
Fixed interest rate (as a percentage)				8%
Servicer advance financing
Short-term Debt [Line Items]
Accrued interest payable on short-term debt	300,000	300,000
Unamortized capitalized commitment costs	100,000	100,000
Business Purpose Loan Warehouse Facilities
Short-term Debt [Line Items]
increase in short term debt from reclassification	$ 450,000,000	$ 900,000,000

Short-Term Debt - Remaining Mat

Short-Term Debt - Remaining Maturities of Short Term Debt (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Short-term debt	[1]	$ 2,110,279	$ 2,177,362
Within 30 days
Short-term Debt [Line Items]
Short-term debt		72,233
31 to 90 days
Short-term Debt [Line Items]
Short-term debt		345,708
Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,692,338
Facilities
Short-term Debt [Line Items]
Short-term debt		1,648,888	1,882,915
Facilities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		72,233
Facilities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		315,006
Facilities | Over 90 days
Short-term Debt [Line Items]
Short-term debt		1,261,649
Facilities | Held-for-sale residential loans
Short-term Debt [Line Items]
Short-term debt		748,962	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		262,804
Facilities | Held-for-sale residential loans | Over 90 days
Short-term Debt [Line Items]
Short-term debt		486,158
Facilities | Business purpose loans
Short-term Debt [Line Items]
Short-term debt		775,491
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		775,491
Facilities | Real estate securities
Short-term Debt [Line Items]
Short-term debt		124,435
Facilities | Real estate securities | Within 30 days
Short-term Debt [Line Items]
Short-term debt		72,233
Facilities | Real estate securities | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		52,202
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		233,104	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		233,104
Promissory notes
Short-term Debt [Line Items]
Short-term debt		30,702
Promissory notes | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Promissory notes | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		30,702
Promissory notes | Over 90 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net
Short-term Debt [Line Items]
Short-term debt		197,585	$ 0
Convertible notes, net | Within 30 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | 31 to 90 days
Short-term Debt [Line Items]
Short-term debt		0
Convertible notes, net | Over 90 days
Short-term Debt [Line Items]
Short-term debt		$ 197,585
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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 $ in Thousands	Sep. 30, 2022 USD ($) series	Dec. 31, 2021 USD ($) series
Debt Instrument [Line Items]
ABS Issued, Net	$ 8,139,293	$ 9,253,557
Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	(1,189,091)	34,092
Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	9,109,550	8,970,474
Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	218,834	248,991
Legacy Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 197,354	$ 227,881
Number of series | series	20	20
Legacy Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (16,602)	$ (32,243)
Legacy Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.52%	0.23%
Legacy Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	3.90%	1.44%
Legacy Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 213,786	$ 259,505
Legacy Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	170	619
Sequoia
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,013,249	$ 3,383,048
Number of series | series	17	16
Sequoia | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (699,473)	$ (2,774)
Sequoia | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.56%	2.40%
Sequoia | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	4.99%	5.03%
Sequoia | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,650,411	$ 3,353,073
Sequoia | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	62,311	32,749
CAFL
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,179,487	$ 3,474,898
Number of series | series	19	16
CAFL | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (330,549)	$ 16,407
CAFL | Minimum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	2.34%	2.64%
CAFL | Maximum
Debt Instrument [Line Items]
Range of weighted average interest rates, by series	5.93%	5.24%
CAFL | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	$ 3,375,688	$ 3,264,766
CAFL | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	134,348	193,725
Freddie Mac SLST
Debt Instrument [Line Items]
ABS Issued, Net	$ 1,249,041	$ 1,588,463
Number of series | series	3	3
Debt instrument, face amount	$ 100,000	$ 145,000
Freddie Mac SLST | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (109,410)	$ 41,111
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	$ 1,344,521	$ 1,535,638
Freddie Mac SLST | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	13,930	11,714
Freddie Mac K-Series
Debt Instrument [Line Items]
ABS Issued, Net	$ 395,411	$ 441,857
Range of weighted average interest rates, by series	3.41%	3.41%
Number of series | series	1	1
Freddie Mac K-Series | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (25,428)	$ 12,973
Freddie Mac K-Series | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	412,764	418,700
Freddie Mac K-Series | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	8,075	10,184
HEI
Debt Instrument [Line Items]
ABS Issued, Net	$ 104,751	$ 137,410
Range of weighted average interest rates, by series	3.76%	3.31%
Number of series | series	1	1
HEI | Revision of Prior Period, Accounting Standards Update, Adjustment
Debt Instrument [Line Items]
ABS Issued, Net	$ (7,629)	$ (1,382)
HEI | Certificates with principal balance
Debt Instrument [Line Items]
ABS Issued, Net	112,380	138,792
HEI | Interest-only certificates
Debt Instrument [Line Items]
ABS Issued, Net	0	0
CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount	$ 485,000	$ 270,000

Asset-Backed Securities Issue_3

Asset-Backed Securities Issued - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2020	Sep. 30, 2022	Dec. 31, 2052	May 29, 2029	Mar. 31, 2029	Jul. 31, 2023	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Debt Instrument [Line Items]
Other assets	[1]		$ 194,500						$ 231,117
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
VIE, ownership interest rate (as a percent)			80%
Variable Interest Entity, Primary Beneficiary | Point HEI
Debt Instrument [Line Items]
ABS issued, net, At amortized cost										$ 146,000
Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, At amortized cost								$ 215,000
Variable Interest Entity, Primary Beneficiary | Freddie Mac SLST
Debt Instrument [Line Items]
ABS issued, net, At amortized cost		$ 210,000
2022 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			$ 215,000
Bridge loan			229,000
Restricted cash			19,000
2022 Asset Backed Securities Sold | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			208,000
Unamortized debt discount			7,000
2021 Asset Backed Securities Sold | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			270,000
Bridge loan			283,000
Restricted cash			24,000
Other assets			24,000
Total funding capacity			300,000
2021 Asset Backed Securities Sold | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)					2%	2%
2021 Asset Backed Securities Sold | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
ABS issued, net, At amortized cost										$ 270,000
Debt instrument, face amount			268,000
Unamortized debt discount			$ 2,000
Debt Instrument interest rate (as a percent)			2.34%
Asset-backed securities issued | CoreVest
Debt Instrument [Line Items]
Debt instrument, face amount			$ 485,000						270,000
Total funding capacity			250,000
Asset-backed securities issued | Freddie Mac SLST
Debt Instrument [Line Items]
Debt instrument, face amount			100,000						$ 145,000
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount			99,000
Unamortized debt discount			$ 1,000
Debt Instrument interest rate (as a percent)			4.75%
VIE, ownership interest rate (as a percent)		100%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | Forecast
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)				2%			7.75%
Asset-backed securities issued | Variable Interest Entity, Primary Beneficiary | CoreVest
Debt Instrument [Line Items]
Debt Instrument interest rate (as a percent)			4.32%
Asset-backed securities issued | Contractual maturities of over five years
Debt Instrument [Line Items]
Contractual maturities of securities (in years)			5 years
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 25,627	$ 25,401
Legacy Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	223	99
Sequoia
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	9,003	8,452
CAFL
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	11,202	11,030
Freddie Mac SLST
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	4,026	4,630
Freddie Mac K-Series
Debt Instrument [Line Items]
Total Accrued Interest Payable on ABS Issued	$ 1,173	$ 1,190

Long-Term Debt - Schedule of Co

Long-Term Debt - Schedule of Components of Long-Term Debt (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Aug. 31, 2022	Jun. 30, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Borrowings	$ 1,546,934,000	$ 1,650,576,000
Unamortized Deferred Issuance Costs / Discount	(12,708,000)	(9,743,000)
Net Carrying Value	1,534,226,000	1,640,833,000
Facilities
Debt Instrument [Line Items]
Borrowings	870,142,000	990,155,000
Unamortized Deferred Issuance Costs / Discount	(1,291,000)	(1,672,000)
Net Carrying Value	868,851,000	988,483,000
Convertible notes
Debt Instrument [Line Items]
Unamortized Deferred Issuance Costs / Discount			$ (1,000,000)
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Borrowings	139,500,000	139,500,000
Unamortized Deferred Issuance Costs / Discount	(745,000)	(779,000)
Net Carrying Value	$ 138,755,000	$ 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
Debt Instrument [Line Items]
Borrowings	$ 131,316,000	$ 144,385,000
Unamortized Deferred Issuance Costs / Discount	0	(313,000)
Net Carrying Value	$ 131,316,000	$ 144,072,000
Weighted Average Interest Rate (as a percent)	4.21%	4.21%
Facility B | Recourse Subordinate Securities Financing
Debt Instrument [Line Items]
Borrowings	$ 102,006,000	$ 102,351,000
Unamortized Deferred Issuance Costs / Discount	(126,000)	(353,000)
Net Carrying Value	$ 101,880,000	$ 101,998,000
Weighted Average Interest Rate (as a percent)	4.21%	4.21%
Facility C | Recourse Subordinate Securities Financing
Debt Instrument [Line Items]
Borrowings	$ 71,792,000	$ 91,707,000
Unamortized Deferred Issuance Costs / Discount	(189,000)	(376,000)
Net Carrying Value	$ 71,603,000	$ 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	$ 565,028,000	$ 307,215,000
Unamortized Deferred Issuance Costs / Discount	(976,000)	(507,000)
Net Carrying Value	564,052,000	306,708,000
Limit	$ 750,000,000	$ 400,000,000			$ 600,000,000
Non-Recourse BPL Financing, Facility D | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.51%	2.75%
Recourse BPL Financing, Facility J | Facilities
Debt Instrument [Line Items]
Borrowings	$ 0
Unamortized Deferred Issuance Costs / Discount	0
Net Carrying Value	0
Limit	$ 500,000,000
Recourse BPL Financing, Facility J | Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Recourse BPL Financing, Facility J | Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Recourse BPL Financing, Facility E | Facilities
Debt Instrument [Line Items]
Borrowings		$ 234,349,000
Unamortized Deferred Issuance Costs / Discount		(123,000)
Net Carrying Value		234,226,000
Limit		$ 450,000,000
Recourse BPL Financing, Facility E | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.21%
Recourse BPL Financing, Facility F | Facilities
Debt Instrument [Line Items]
Borrowings		$ 110,148,000
Unamortized Deferred Issuance Costs / Discount		0
Net Carrying Value		110,148,000
Limit		$ 450,000,000
Recourse BPL Financing, Facility F | Facilities | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		3.35%
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 199,000,000	$ 198,629,000
Unamortized Deferred Issuance Costs / Discount		(1,836,000)
Net Carrying Value		$ 196,793,000
Weighted Average Interest Rate (as a percent)	4.75%	4.75%
5.625% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 150,200,000	$ 150,200,000
Unamortized Deferred Issuance Costs / Discount	(1,484,000)	(2,072,000)
Net Carrying Value	$ 148,716,000	$ 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	(2,769,000)	(3,384,000)
Net Carrying Value	$ 169,323,000	$ 168,708,000
Weighted Average Interest Rate (as a percent)	5.75%	5.75%
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings				$ 215,000,000
Unamortized Deferred Issuance Costs / Discount	$ (6,419,000)
Net Carrying Value	$ 208,581,000
Weighted Average Interest Rate (as a percent)	7.75%

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details)	1 Months Ended
	Jun. 30, 2022 USD ($) $ / shares	Sep. 30, 2022 USD ($)	Aug. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)
Debt Instrument [Line Items]
Borrowings		$ 1,546,934,000		$ 1,650,576,000
Debt instrument, unamortized deferred issuance costs		12,708,000		9,743,000
Facilities
Debt Instrument [Line Items]
Borrowings		870,142,000		990,155,000
Debt instrument, unamortized deferred issuance costs		1,291,000		1,672,000
Convertible notes
Debt Instrument [Line Items]
Debt instrument, unamortized deferred issuance costs			$ 1,000,000
Non-Recourse BPL Financing, Facility D | Facilities
Debt Instrument [Line Items]
Limit		750,000,000		400,000,000	$ 600,000,000
Borrowings		565,028,000		307,215,000
Debt instrument, unamortized deferred issuance costs		$ 976,000		507,000
7.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings	$ 215,000,000
Debt Instrument interest rate (as a percent)		7.75%
Net proceeds from issuance of convertible debt	$ 208,000,000
Range of weighted average interest rates, by series	8.50%
Convertible senior notes conversion rate	0.0956823
Convertible senior notes conversion per share (in dollars per share) | $ / shares	$ 10.45
Debt instrument, unamortized deferred issuance costs		$ 6,419,000
4.75% convertible senior notes | Convertible notes
Debt Instrument [Line Items]
Borrowings		$ 199,000,000		$ 198,629,000
Debt Instrument interest rate (as a percent)		4.75%		4.75%
Debt instrument, unamortized deferred issuance costs				$ 1,836,000

Long-Term Debt - Schedule of _2

Long-Term Debt - Schedule of Collateral for Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Collateral amounts	$ 1,124,750	$ 1,306,932
Bridge Loan
Debt Instrument [Line Items]
Collateral amounts	699,704	554,597
Residential Real Estate
Debt Instrument [Line Items]
Collateral amounts	0	244,703
Commercial Real Estate | Facility A | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	184,363	247,227
Commercial Real Estate | Facility B | Affiliated Entity
Debt Instrument [Line Items]
Collateral amounts	$ 240,683	$ 260,405

Long-Term Debt - Schedule of Ac

Long-Term Debt - Schedule of Accrued Interest Payable on Long Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 15,828	$ 11,330
Facilities
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	2,685	815
Convertible notes | 4.75% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	0	3,564
Convertible notes | 5.625% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	1,784	3,896
Convertible notes | 5.75% exchangeable senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	4,947	2,474
Convertible notes | 7.75% convertible senior notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	5,184	0
Trust preferred securities and subordinated notes
Debt Instrument [Line Items]
Total Accrued Interest Payable on Long-Term Debt	$ 1,228	$ 581

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands			3 Months Ended			9 Months Ended		12 Months Ended
		Jul. 01, 2022 USD ($)	Sep. 30, 2022 USD ($) lease	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) repurchase_request lease loan	Sep. 30, 2021 USD ($) repurchase_request loan	Dec. 31, 2021 USD ($)	Dec. 31, 2018 partnership	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Loss Contingencies [Line Items]
Lessee, number of leases | lease			10			10
Present value of remaining lease payments			$ 22,326			$ 22,326
Operating lease expense						4,000	$ 3,000
Number of leases assumed | lease			3
Operating lease liabilities			$ 19,533			$ 19,533		$ 20,960
Operating lease liability, statement of financial position [Extensible List]			Accounts Payable and Accrued Liabilities			Accounts Payable and Accrued Liabilities
Operating lease right-of-use assets			$ 17,126			$ 17,126		18,772
Operating lease right-of-use asset, statement of financial position [Extensible List]			Other assets			Other assets
Weighted average remaining lease term			5 years			5 years
Discount rate (as a percent)			5.20%			5.20%
Derivative liabilities	[1]		$ 6,782			$ 6,782		3,317
Net market valuation gains (losses)			1,000		$ (300)	(2,000)	1,000
Number of partnerships, committed to fund | partnership									2
Other income related to risk sharing agreement			279		575	1,062	$ 2,318
Guarantee obligations			6,532			6,532		7,459
Guarantee obligations, credit reserve			5,000			5,000
Special purpose entities assets			30,000			30,000
Special purpose entities liabilities			7,000			7,000
Residential repurchase reserve			5,754			$ 5,754		9,306
Number of residential repurchase requests (in repurchase requests) | repurchase_request						7	8
Number of loans repurchased | loan						1	1
Residential loans repurchase (reversal) provision			(100)		$ (300)	$ (4,000)	$ (600)
Aggregate amount of loss contingency reserves			2,000			2,000
Riverbend Funding, LLC
Loss Contingencies [Line Items]
Earnout period		2 years
Potential future payments on loans		$ 25,300
Securitized Point Options
Loss Contingencies [Line Items]
Payments to acquire other investments						350,000
Maximum
Loss Contingencies [Line Items]
Loss from arrangements						100
Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance			874,412			874,412		1,813,865
Fair value of loans			834,262			834,262		1,845,282
Other income
Loss Contingencies [Line Items]
Other income related to risk sharing agreement			300			1,000
Guarantee Obligations
Loss Contingencies [Line Items]
Potential future payments on loans			44,000			44,000
Original unpaid balance of loans subject to risk sharing agreements										$ 3,190,000	$ 3,190,000
Unpaid principal balance			$ 454,000			$ 454,000
Weighted average original FICO score			756			756
Weighted average original loan-to-value (LTV)			74%			74%
Guarantee Obligations | Residential Loans
Loss Contingencies [Line Items]
Unpaid principal balance of loans in foreclosure			$ 1,000			$ 1,000
Guarantee Obligations | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Fair value of loans			10,000			10,000
Commitment To Fund Residential Bridge Loan
Loss Contingencies [Line Items]
Other commitments made			990,000			990,000
Derivative liabilities			(3,000)			(3,000)
Commitment To Acquire HEIs
Loss Contingencies [Line Items]
Cumulative commitment			149,000			149,000
Commitment To Acquire HEIs | Financing Receivables, Equal to Greater than 90 Days Past Due
Loss Contingencies [Line Items]
Cumulative commitment			85,000			85,000
Commitment To Fund Strategic Investment
Loss Contingencies [Line Items]
Other commitments made			15,000			15,000
Payments for other commitments				$ 25,000
Commitment To Fund RWT Horizons Investments
Loss Contingencies [Line Items]
Other commitments made			$ 1,000			$ 1,000
Payments for other commitments								$ 5,000
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 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	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2022 (3 months)	$ 1,216
2023	4,956
2024	4,601
2025	3,580
2026	3,420
2027 and thereafter	4,553
Total Lease Commitments	22,326
Less: Imputed interest	(2,793)
Operating lease liabilities	$ 19,533	$ 20,960

Equity - Changes to Accumulated

Equity - Changes to Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,258,091	$ 1,295,142	$ 1,386,087	$ 1,110,899
Total other comprehensive (loss) income	(7,147)	(7,817)	(56,008)	6,144
Balance at End of Period	1,154,242	1,375,823	1,154,242	1,375,823
Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	16,595	88,251	67,503	76,336
Other comprehensive (loss) income before reclassifications	(8,731)	(2,658)	(60,013)	19,552
Amounts reclassified from other accumulated comprehensive (income) loss	544	(6,200)	918	(16,495)
Total other comprehensive (loss) income	(8,187)	(8,858)	(59,095)	3,057
Balance at End of Period	8,408	79,393	8,408	79,393
Interest Rate Agreements Accounted for as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(74,383)	(78,511)	(76,430)	(80,557)
Other comprehensive (loss) income before reclassifications	0	0	0	0
Amounts reclassified from other accumulated comprehensive (income) loss	1,040	1,041	3,087	3,087
Total other comprehensive (loss) income	1,040	1,041	3,087	3,087
Balance at End of Period	$ (73,343)	$ (77,470)	$ (73,343)	$ (77,470)

Equity - Reclassifications out

Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment fair value changes, net	$ (57,697)	$ 26,077	$ (151,789)	$ 120,644
Realized gains, net	0	(6,703)	(2,581)	(17,803)
Interest expense	142,727	103,754	405,992	314,371
Net income before provision for income taxes	(48,994)	83,963	(129,946)	289,475
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	544	0	2,315	(388)
Realized gains, net	0	(6,200)	(1,397)	(16,107)
Net income before provision for income taxes	544	(6,200)	918	(16,495)
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	1,040	1,041	3,087	3,087
Net income before provision for income taxes	$ 1,040	$ 1,041	$ 3,087	$ 3,087

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jul. 31, 2022	Feb. 28, 2018
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock			$ 67,899,000	$ 20,248,000
Share repurchases	$ 23,694,000		$ 56,496,000
Share Repurchase Program 2022
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board					$ 125,000,000
Share repurchases (in shares)	3,400,000		7,100,000
Available authorization remaining for repurchase	$ 101,000,000		$ 101,000,000
Prior Share Repurchase Program
Stockholders Equity Note [Line Items]
Common stock authorized to repurchase by Board						$ 100,000,000
Convertible Debt Securities
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)	49,137,808		37,307,705
Equity awards
Stockholders Equity Note [Line Items]
Securities excluded in the calculation of diluted earnings per share (in shares)	249,178	22,102	268,737	18,736
At The Market Offerings | Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)			5,200,000
Net proceeds from issuance of common stock			$ 67,000,000
Remaining capacity	$ 175,000,000		$ 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		6,000,000
Common Stock
Stockholders Equity Note [Line Items]
Issuance of common stock (in shares)		1,585,709	5,232,869	2,391,777
Share repurchases (in shares)	3,448,858		7,128,891
Share repurchases	$ 35,000		$ 71,000

Equity - Basic and Diluted Earn

Equity - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Basic Earnings per Common Share:
Net (loss) income attributable to Redwood	$ (50,411)	$ 88,286	$ (119,462)	$ 275,568
Less: Dividends and undistributed earnings allocated to participating securities	(1,158)	(2,984)	(3,445)	(8,979)
Net (loss) income allocated to common shareholders	$ (51,569)	$ 85,302	$ (122,907)	$ 266,589
Basic weighted average common shares outstanding (in shares)	116,087,890	112,995,847	118,530,172	112,754,691
Basic Earnings per Common Share (in dollars per share)	$ (0.44)	$ 0.75	$ (1.04)	$ 2.36
Diluted Earnings per Common Share:
Net (loss) income attributable to Redwood	$ (50,411)	$ 88,286	$ (119,462)	$ 275,568
Less: Dividends and undistributed earnings allocated to participating securities	(1,158)	(2,747)	(3,445)	(8,151)
Add back: Interest expense on convertible notes for the period, net of tax	0	6,870	0	20,585
Net (loss) income allocated to common shareholders	$ (51,569)	$ 92,409	$ (122,907)	$ 288,002
Net effect of dilutive equity awards (in shares)	0	292,749	0	253,819
Net effect of assumed convertible notes conversion to common shares (in shares)	0	28,566,875	0	28,566,875
Diluted weighted average common shares outstanding (in shares)	116,087,890	141,855,471	118,530,172	141,575,385
Diluted Earnings (Loss) per Common Share (in dollars per share)	$ (0.44)	$ 0.65	$ (1.04)	$ 2.03

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 34,596,000	$ 42,383,000
Weighted average amortization period remaining for equity awards		2 years
Shares of common stock to be purchased in aggregate for all employees (in shares)		850,000
Number of shares purchased by employees (in shares)		505,496	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)		26,000
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)		476,893	431,072
Number of stock awards granted (in shares)		208,717,000
Number of stock awards vested (in shares)		123,869,000
Number of stock awards forfeited (in shares)		39,027,000
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested outstanding stock awards (in shares)		4,911,777	4,022,088
Number of stock awards granted (in shares)		1,214,533,000
Number of stock awards vested (in shares)		2,217,327	1,469,903
Number of stock awards forfeited (in shares)		8,298,000
Stock units distributed (in shares)		316,546,000
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
Equity compensation expense		$ 3,000,000
Redwood Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant (in shares)		5,258,817	5,958,390
Redwood Incentive Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 0	$ 84,000
Redwood Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		4,087,000	3,589,000
Redwood Incentive Plan | Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		23,920,000	26,473,000
Redwood Incentive Plan | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 6,508,000	$ 12,237,000

Equity Compensation Plans - Unr

Equity Compensation Plans - Unrecognized Compensation Cost (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	$ 42,383
Equity grants	10,796
Performance-based valuation adjustment	(3,205)
Equity grant forfeitures	(554)
Equity compensation expense	(14,824)
Unrecognized Compensation Cost at End of Period	34,596
Redwood Incentive Plan | Restricted Stock Awards
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	84
Equity grants	0
Performance-based valuation adjustment	0
Equity grant forfeitures	(5)
Equity compensation expense	(79)
Unrecognized Compensation Cost at End of Period	0
Redwood Incentive Plan | Restricted Stock Units
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Roll Forward]
Unrecognized compensation cost at beginning of period	3,589
Equity grants	2,513
Performance-based valuation adjustment	0
Equity grant forfeitures	(448)
Equity compensation expense	(1,567)
Unrecognized Compensation Cost at End of Period	4,087
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	7,960
Performance-based valuation adjustment	0
Equity grant forfeitures	(101)
Equity compensation expense	(10,412)
Unrecognized Compensation Cost at End of Period	23,920
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	(3,205)
Equity grant forfeitures	0
Equity compensation expense	(2,524)
Unrecognized Compensation Cost at End of Period	6,508
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	(242)
Unrecognized Compensation Cost at End of Period	$ 81

Mortgage Banking Activities, _3

Mortgage Banking Activities, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	$ 4,027	$ 2,388	$ 17,016	$ 8,357
Mortgage banking activities, net	16,535	63,163	2,833	200,189
Residential Mortgage Banking Activities, Net
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other income, net	467	1,089	5,496	3,305
Mortgage banking activities, net	2,158	32,946	(7,694)	115,646
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	(22,776)	27,862	(125,012)	75,496
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	148	32	4,249	(342)
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	24,319	3,963	107,573	37,187
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	(9)	3,433	2,242	6,702
Other income, net	9,648	8,747	36,214	22,236
Mortgage banking activities, net	14,377	30,217	10,527	84,543
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	24,044	(424)	56,564	930
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	$ (19,306)	$ 18,461	$ (84,493)	$ 54,675

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Income and Expenses [Abstract]
MSR income, net	$ 2,890	$ 295	$ 12,569	$ 949
Bridge loan fees	1,489	1,131	3,952	2,735
Risk share income	279	575	1,062	2,318
Other	(631)	387	(567)	2,355
Other income, net	$ 4,027	$ 2,388	$ 17,016	$ 8,357

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		3 Months Ended		9 Months Ended
	Oct. 15, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Business Acquisition [Line Items]
Fixed compensation expense (1)		$ 18,626	$ 11,285	$ 45,364	$ 34,359
Annual variable compensation expense		3,521	19,844	8,689	51,021
Long-term incentive award expense		4,998	4,915	16,190	14,766
Acquisition-related equity compensation expense		0	1,189	0	3,613
Systems and consulting		3,909	2,975	10,796	9,224
Office costs		2,381	2,197	6,489	6,029
Accounting and legal		1,775	1,197	5,026	3,132
Corporate costs		928	964	2,792	2,528
Other		3,969	3,126	11,581	7,165
Total General and Administrative Expenses		40,107	47,692	106,927	131,837
Commissions		1,549	1,906	6,279	4,830
Underwriting costs		545	2,351	3,013	5,872
Transfer and holding costs		332	364	1,079	1,226
Total Loan Acquisition Costs		2,426	4,621	10,371	11,928
Amortization of purchase-related intangible assets		3,891	3,873	10,731	11,619
Other		370	150	1,083	485
Total Other Expenses		4,261	4,023	11,814	12,104
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses		46,794	56,336	129,112	155,869
Severance and transition-related expenses		3,000		3,000
Settlement in Common Stock
Business Acquisition [Line Items]
Long-term incentive award expense		5,000	3,000	15,000	10,000
Settlement in Cash
Business Acquisition [Line Items]
Long-term incentive award expense		100	$ 1,000	1,000	$ 4,000
Unamortized compensation cost		2,000		$ 2,000		$ 7,000
Variable compensation expense, service period				4 years
Cash Based Retention Award
Business Acquisition [Line Items]
Cash-based retention awards granted		2,000		$ 2,000
Variable compensation expense, term				3 years
Unamortized compensation cost		$ 4,000		$ 4,000		$ 4,000
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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision from (benefit for) income taxes	$ 1,417	$ (4,323)	$ (10,484)	$ 13,907

Taxes - Reconciliation of Statu

Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Federal statutory rate	21%	21%
State statutory rate, net of Federal tax effect	8.60%	8.60%
Differences in taxable (loss) income from GAAP income	(29.60%)	(13.10%)
Change in valuation allowance	(2.40%)	(6.80%)
Dividends paid deduction	10.50%	(4.90%)
Effective Tax Rate	8.10%	4.80%

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	3

Segment Information - Financial

Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Interest income	$ 177,662	$ 145,722	$ 534,517	$ 412,722
Interest expense	(142,727)	(103,754)	(405,992)	(314,371)
Net Interest Income	34,935	41,968	128,525	98,351
Non-interest (loss) income
Mortgage banking activities, net	16,535	63,163	2,833	200,189
Investment fair value changes, net	(57,697)	26,077	(151,789)	120,644
Other income, net	4,027	2,388	17,016	8,357
Realized gains, net	0	6,703	2,581	17,803
Total non-interest (loss) income, net	(37,135)	98,331	(129,359)	346,993
General and administrative expenses	(40,107)	(47,692)	(106,927)	(131,837)
Loan acquisition costs	(2,426)	(4,621)	(10,371)	(11,928)
Other expenses	(4,261)	(4,023)	(11,814)	(12,104)
Benefit from (provision for) income taxes	(1,417)	4,323	10,484	(13,907)
Net (Loss) Income	(50,411)	88,286	(119,462)	275,568
Non-cash amortization (expense) income, net	(10,295)	(570)	(14,305)	(12,815)
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	9,882	14,712	36,048	35,536
Interest expense	(8,083)	(7,537)	(23,316)	(19,903)
Net Interest Income	1,799	7,175	12,732	15,633
Non-interest (loss) income
Mortgage banking activities, net	2,158	32,946	(7,694)	115,646
Investment fair value changes, net	0	0	0	0
Other income, net	0	0	0	0
Realized gains, net	0	0	0	0
Total non-interest (loss) income, net	2,158	32,946	(7,694)	115,646
General and administrative expenses	(5,735)	(7,891)	(17,918)	(27,478)
Loan acquisition costs	(550)	(2,395)	(2,848)	(5,686)
Other expenses	0	0	74	(6)
Benefit from (provision for) income taxes	1,688	(10,429)	8,283	(23,640)
Net (Loss) Income	(640)	19,406	(7,371)	74,469
Non-cash amortization (expense) income, net	(185)	(33)	(699)	8,867
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Interest income	9,082	3,967	22,509	9,849
Interest expense	(5,971)	(2,013)	(12,797)	(5,134)
Net Interest Income	3,111	1,954	9,712	4,715
Non-interest (loss) income
Mortgage banking activities, net	14,377	30,217	10,527	84,543
Investment fair value changes, net	0	0	0	0
Other income, net	399	216	2,028	494
Realized gains, net	0	0	0	0
Total non-interest (loss) income, net	14,776	30,433	12,555	85,037
General and administrative expenses	(18,535)	(12,017)	(40,076)	(34,567)
Loan acquisition costs	(1,876)	(2,175)	(7,523)	(5,528)
Other expenses	(3,891)	(3,873)	(10,731)	(11,523)
Benefit from (provision for) income taxes	2,559	(3,485)	9,009	(6,988)
Net (Loss) Income	(3,856)	10,837	(27,054)	31,146
Non-cash amortization (expense) income, net	(3,609)	(4,224)	(11,563)	(16,154)
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Interest income	156,882	125,994	471,932	363,751
Interest expense	(111,876)	(84,049)	(331,047)	(258,685)
Net Interest Income	45,006	41,945	140,885	105,066
Non-interest (loss) income
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	(61,780)	26,324	(165,297)	121,812
Other income, net	3,906	1,842	15,423	7,121
Realized gains, net	0	6,703	2,581	17,803
Total non-interest (loss) income, net	(57,874)	34,869	(147,293)	146,736
General and administrative expenses	(3,502)	(4,483)	(9,676)	(10,804)
Loan acquisition costs	0	(51)	0	(710)
Other expenses	(370)	(150)	(1,157)	(592)
Benefit from (provision for) income taxes	(5,664)	(1,045)	(6,808)	(2,561)
Net (Loss) Income	(22,404)	71,085	(24,049)	237,135
Non-cash amortization (expense) income, net	(3,658)	5,682	4,385	317
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,816	1,049	4,028	3,586
Interest expense	(16,797)	(10,155)	(38,832)	(30,649)
Net Interest Income	(14,981)	(9,106)	(34,804)	(27,063)
Non-interest (loss) income
Mortgage banking activities, net	0	0	0	0
Investment fair value changes, net	4,083	(247)	13,508	(1,168)
Other income, net	(278)	330	(435)	742
Realized gains, net	0	0	0	0
Total non-interest (loss) income, net	3,805	83	13,073	(426)
General and administrative expenses	(12,335)	(23,301)	(39,257)	(58,988)
Loan acquisition costs	0	0	0	(4)
Other expenses	0	0	0	17
Benefit from (provision for) income taxes	0	19,282	0	19,282
Net (Loss) Income	(23,511)	(13,042)	(60,988)	(67,182)
Non-cash amortization (expense) income, net	$ (2,843)	$ (1,995)	$ (6,428)	$ (5,845)

Segment Information - Component

Segment Information - Components of Corporate/Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Interest income	$ 177,662	$ 145,722	$ 534,517	$ 412,722
Interest expense	(142,727)	(103,754)	(405,992)	(314,371)
Net Interest Income	34,935	41,968	128,525	98,351
Investment fair value changes, net	(57,697)	26,077	(151,789)	120,644
Other	(631)	387	(567)	2,355
Total non-interest (loss) income, net	(37,135)	98,331	(129,359)	346,993
General and administrative expenses	(40,107)	(47,692)	(106,927)	(131,837)
Loan acquisition costs	(2,426)	(4,621)	(10,371)	(11,928)
Other expenses	(4,261)	(4,023)	(11,814)	(12,104)
(Provision for) benefit from income taxes	(1,417)	4,323	10,484	(13,907)
Net (Loss) Income	(50,411)	88,286	(119,462)	275,568
Corporate/ Other
Segment Reporting Information [Line Items]
Interest income	1,816	1,049	4,028	3,586
Interest expense	(16,797)	(10,155)	(38,832)	(30,649)
Net Interest Income	(14,981)	(9,106)	(34,804)	(27,063)
Investment fair value changes, net	4,083	(247)	13,508	(1,168)
Other	(278)	330	(435)	742
Total non-interest (loss) income, net	3,805	83	13,073	(426)
General and administrative expenses	(12,335)	(23,301)	(39,257)	(58,988)
Loan acquisition costs	0	0	0	(4)
Other expenses	0	0	0	17
(Provision for) benefit from income taxes	0	19,282	0	19,282
Net (Loss) Income	(23,511)	(13,042)	(60,988)	(67,182)
Corporate/ Other | Legacy Consolidated VIEs
Segment Reporting Information [Line Items]
Interest income	1,473	1,042	3,593	3,559
Interest expense	(1,486)	(641)	(3,154)	(2,271)
Net Interest Income	(13)	401	439	1,288
Investment fair value changes, net	(329)	(247)	(1,379)	(1,162)
Other	0	0	0	0
Total non-interest (loss) income, net	(329)	(247)	(1,379)	(1,162)
General and administrative expenses	0	0	0	0
Loan acquisition costs	0	0	0	0
Other expenses	0	0	0	0
(Provision for) benefit from income taxes	0	0	0	0
Net (Loss) Income	(342)	154	(940)	126
Corporate/ Other | Other
Segment Reporting Information [Line Items]
Interest income	343	7	435	27
Interest expense	(15,311)	(9,514)	(35,678)	(28,378)
Net Interest Income	(14,968)	(9,507)	(35,243)	(28,351)
Investment fair value changes, net	4,412	0	14,887	(6)
Other	(278)	330	(435)	742
Total non-interest (loss) income, net	4,134	330	14,452	736
General and administrative expenses	(12,335)	(23,301)	(39,257)	(58,988)
Loan acquisition costs	0	0	0	(4)
Other expenses	0	0	0	17
(Provision for) benefit from income taxes	0	19,282	0	19,282
Net (Loss) Income	$ (23,169)	$ (13,196)	$ (60,048)	$ (67,308)

Segment Information - Supplemen

Segment Information - Supplemental Information by Segment (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Home equity investments		$ 340,437	$ 192,740
Real estate securities	[1]	259,212	377,411
Other investments	[1]	412,762	449,229
Goodwill	[1]	23,373	0
Intangible assets		44,130	41,561
Total Assets	[1]	13,145,947	14,706,944
Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		5,752,556	7,592,432
Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		5,257,218	4,790,989
Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		427,458	473,514
Operating Segments | Residential Mortgage Banking
Segment Reporting Information [Line Items]
Home equity investments		0	0
Real estate securities		0	4,927
Other investments		0	0
Goodwill		0
Intangible assets		0	0
Total Assets		738,301	1,716,285
Operating Segments | Residential Mortgage Banking | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		676,458	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 | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Business Purpose Mortgage Banking
Segment Reporting Information [Line Items]
Home equity investments		0	0
Real estate securities		0	0
Other investments		0	0
Goodwill		23,373
Intangible assets		44,130	41,561
Total Assets		473,748	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		337,238	347,860
Operating Segments | Business Purpose Mortgage Banking | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Operating Segments | Investment Portfolio
Segment Reporting Information [Line Items]
Home equity investments		340,437	192,740
Real estate securities		259,212	372,484
Other investments		341,155	413,527
Goodwill		0
Intangible assets		0	0
Total Assets		11,301,836	11,770,486
Operating Segments | Investment Portfolio | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		4,877,938	5,688,742
Operating Segments | Investment Portfolio | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		4,919,980	4,443,129
Operating Segments | Investment Portfolio | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		427,458	473,514
Corporate/ Other
Segment Reporting Information [Line Items]
Home equity investments		0	0
Real estate securities		0	0
Other investments		71,607	35,702
Goodwill		0
Intangible assets		0	0
Total Assets		632,062	755,206
Corporate/ Other | Residential loans
Segment Reporting Information [Line Items]
Fair value of loans		198,160	230,455
Corporate/ Other | Business purpose loans
Segment Reporting Information [Line Items]
Fair value of loans		0	0
Corporate/ Other | Consolidated Agency multifamily loans
Segment Reporting Information [Line Items]
Fair value of loans		$ 0	$ 0
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2022 and December 31, 2021, assets of consolidated VIEs totaled $9,449,163 and $10,661,081, respectively. At September 30, 2022 and December 31, 2021, liabilities of consolidated VIEs totaled $8,448,479 and $9,619,347, respectively. See Note 4 for further discussion.