| Debt Obligations, Net |
Debt Obligations, Net We enter into loan warehouse facilities, repurchase agreements ("repo"), recourse subordinate securities financings, and other forms of collateralized (and generally uncommitted) borrowings with several banks and major investment banking firms. We use debt to finance the acquisition and/or origination of residential consumer and residential investor mortgage loans (including those we acquire or originate in anticipation of sale or securitization), and to finance investments in securities and other investments. Additionally, we use corporate debt obligations to fund other aspects of our business and operations, including the repurchase of shares of our capital stock. At June 30, 2026, we had outstanding agreements on debt obligations with several counterparties and we were in compliance with all of the related covenants. Refer to Note 3 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding these investments. Refer to Note 18 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding our debt obligations. The following tables summarize our debt obligations at June 30, 2026 and December 31, 2025. Table 18.1 – Debt Obligations, Net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (Dollars in Thousands) | | | | Number of Facilities or Issuances | | Principal Amount | | Carrying Value (1) | | Facility Capacity | | Weighted Average Interest Rate (2) | | Final Stated Maturity | | Carrying Value of Collateral | | | | | | | | | | | | | | | | | | | Short-Term Facilities: | | | | | | | | | | | | | | | | | | Residential consumer loan warehouse facilities | | | | 9 | | $ | 2,724,511 | | | $ | 2,724,511 | | | $ | 4,700,000 | | | 5.25 | % | | 7/2026-4/2027 | | $ | 2,913,168 | | | Residential investor loan warehouse facilities | | | | 4 | | 106,172 | | 105,994 | | 475,000 | | | 6.87 | % | | 7/2026-12/2026 | | 122,634 | | Real estate securities repurchase facilities | | | | 2 | | 94,048 | | 94,048 | | — | | | 5.26 | % | | 7/2026 | | 118,465 | | Real estate securities repurchase facilities IO | | | | 1 | | 35,493 | | | 35,493 | | | 75,000 | | | 6.62 | % | | 8/2026 | | 145,966 | | | Residential MSR warehouse facility | | | | 1 | | 125,000 | | 125,000 | | 125,000 | | | 6.87 | % | | 1/2027 | | 291,676 | | HEI warehouse facility | | | | 1 | | 42,388 | | 42,388 | | 150,000 | | | 8.16 | % | | 12/2026 | | 99,074 | | Servicer advance financing | | | | 1 | | 128,191 | | 128,025 | | 200,000 | | | 5.59 | % | | 12/2026 | | 208,754 | | | | | | | | | | | | | | | | | | | Recourse Subordinate Securities Financings: | | | | | | | | | | | | | | | | | CAFL securities (3) | | | | 1 | | 261,457 | | 260,976 | | (a) | | 7.54 | % | | 9/2028 | | 313,821 | Sequoia and other third-party securities (3) | | | | 1 | | 83,383 | | 83,383 | | (a) | | 7.27 | % | | 6/2027 | | 103,097 | | | | | | | | | | | | | | | | | | | Long-Term Facilities: | | | | | | | | | | | | | | | | | | Residential investor loan warehouse facilities | | | | 2 | | 104,842 | | 104,819 | | 1,300,000 | | | 6.39 | % | | 8/2027 | | 177,864 | Secured revolving financing facility (4) | | | | 1 | | 370,883 | | 367,009 | | 400,000 | | | 8.73 | % | | 3/2027 | | 899,288 | | | | | | | | | | | | | | | | | | | Corporate Debt: | | | | | | | | | | | | | | | | | Promissory notes (3) (5) | | | | 3 | | 8,023 | | 8,023 | | (a) | | 6.91 | % | | N/A | | (b) | 7.75% convertible senior notes (3) (6) | | | | 1 | | 297,170 | | 294,369 | | (a) | | 7.75 | % | | 6/2027 | | (b) | | Trust preferred securities and subordinated notes | | | | 2 | | 139,500 | | 138,929 | | (a) | | 6.18 | % | | 1/2037, 7/2037 | | (b) | 9.125% Senior Notes (3) | | | | 1 | | 59,127 | | 57,675 | | (a) | | 9.13 | % | | 3/2029 | | (b) | 9.0% Senior Notes (3) | | | | 1 | | 84,015 | | 81,922 | | (a) | | 9.00 | % | | 9/2029 | | (b) | 9.125% Senior Notes (3) | | | | 1 | | 89,232 | | 86,577 | | (a) | | 9.13 | % | | 3/2030 | | (b) | 9.5% Senior Notes (3) | | | | 1 | | 100,000 | | 96,815 | | (a) | | 9.50 | % | | 12/2030 | | (b) | 9.75% Senior Notes (3) | | | | 1 | | 125,000 | | 120,618 | | (a) | | 9.75 | % | | 6/2031 | | (b) | | Total Debt Obligations | | | | | | $ | 4,978,435 | | | $ | 4,956,574 | | | | | | | | | $ | 5,393,807 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | (Dollars in Thousands) | | | | Number of Facilities or Issuances | | Principal Amount | | Carrying Value (1) | | Facility Capacity | | Weighted Average Interest Rate (2) | | Final Stated Maturity | | Carrying Value of Collateral | | | | Short-Term Facilities: | | | | | | | | | | | | | | | | | | | | Residential consumer loan warehouse facilities | | | | 8 | | $ | 2,798,725 | | | $ | 2,798,725 | | | $ | 3,554,960 | | | 5.52 | % | | 1/2026-8/2026 | | $ | 3,066,067 | | | | | Residential investor loan warehouse facilities | | | | 4 | | 157,999 | | 157,571 | | 825,000 | | 7.22 | % | | 5/2026-12/2026 | | 159,074 | | | | Real estate securities repurchase facilities | | | | 4 | | 30,867 | | 30,867 | | — | | | 5.20 | % | | 1/2026-3/2026 | | 40,568 | | | | Real estate securities repurchase facilities IO | | | | 1 | | — | | | — | | | 75,000 | | 6.87 | % | | 6/2026 | | — | | | | | Residential MSR warehouse facility | | | | 1 | | 95,862 | | 95,862 | | 125,000 | | 7.12 | % | | 1/2026 | | 194,228 | | | | HEI warehouse facility | | | | 1 | | 43,496 | | 43,496 | | 150,000 | | 8.29 | % | | 12/2026 | | 98,308 | | | | Servicer advance financing | | | | 1 | | 152,660 | | 152,293 | | 200,000 | | 5.68 | % | | 12/2026 | | 223,677 | | | | | | | | | | | | | | | | | | | | | | | Recourse Subordinate Securities Financings: | | | | | | | | | | | | | | | | | | | CAFL securities (3) | | | | 1 | | 263,063 | | 262,374 | | (a) | | 7.54 | % | | 9/2028 | | 330,212 | | | Sequoia and other third-party securities (3) | | | | 1 | | 87,477 | | 87,477 | | (a) | | 7.27 | % | | 6/2027 | | 109,686 | | | | | | | | | | | | | | | | | | | | | | | Long Term Facilities: | | | | | | | | | | | | | | | | | | | | Residential investor loan warehouse facilities | | | | 2 | | 131,138 | | | 131,069 | | | 1,300,000 | | | 6.68 | % | | 1/2027-8/2027 | | 205,833 | | | | Secured revolving financing facility (4) | | | | 1 | | 282,883 | | 276,580 | | 400,000 | | | 8.66 | % | | 3/2027 | | 451,262 | | | | | | | | | | | | | | | | | | | | | | | | Corporate Debt: | | | | | | | | | | | | | | | | | | | Promissory notes (3) (5) | | | | 3 | | 9,264 | | 9,264 | | (a) | | 7.01 | % | | N/A | | (b) | | | 7.75% convertible senior notes (3) | | | | 1 | | 297,170 | | 292,993 | | (a) | | 7.75 | % | | 6/2027 | | (b) | | | | Trust preferred securities and subordinated notes | | | | 2 | | 139,500 | | 138,906 | | (a) | | 6.35 | % | | 1/2037, 7/2037 | | (b) | | | 9.125% Senior Notes (3) | | | | 1 | | 59,127 | | 57,444 | | (a) | | 9.13 | % | | 3/2029 | | (b) | | | 9.0% Senior Notes (3) | | | | 1 | | 84,015 | | 81,647 | | (a) | | 9.00 | % | | 9/2029 | | (b) | | | 9.125% Senior Notes (3) | | | | 1 | | 89,232 | | 86,270 | | (a) | | 9.13 | % | | 3/2030 | | (b) | | | 9.5% Senior Notes (3) | | | | 1 | | 100,000 | | 96,544 | | (a) | | 9.50 | % | | 12/2030 | | (b) | | | | Total Debt Obligations | | | | | | $ | 4,822,478 | | | $ | 4,799,382 | | | | | | | | | $ | 4,878,915 | | | |
(1)Carrying value presented net of total deferred issuance costs of $22 million and $23 million at June 30, 2026 and December 31, 2025, respectively. (2)Variable rate borrowings are based on 1- or 3-month SOFR, plus an applicable spread. (3)Borrowing has a fixed interest rate at period end. (4)Facility may be extended for one year at our option. (5)Promissory notes payable on demand to lender with 90-day notice. (6)We may settle conversions in cash, shares, or a combination, with the principal amount settled in cash. At June 30, 2026, the conversion rate was 95.6823 shares per $1,000 principal amount of notes (a conversion price of $10.45 per share).
(a) Outstanding principal balance represents facility capacity at period end. (b) Unsecured corporate debt; no related collateral at period end. Corporate Debt Senior Notes In the second quarter of 2026, Redwood issued $125 million of 9.75% Senior Notes due in 2031. The Senior Notes are senior unsecured obligations of Redwood and bear interest at a rate equal to 9.75% per year, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, beginning on September 1, 2026. The Senior Notes mature on June 1, 2031. We may redeem the Senior Notes, in whole or in part, at any time on or after June 1, 2028 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest.
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