v3.26.1
Fair Value of Financial Instruments - Schedule of Fair Value Methodology for Level 3 Financial Instruments (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2026
USD ($)
$ / loan
securitization
Dec. 31, 2025
USD ($)
tranche
Jun. 30, 2025
USD ($)
On-balance sheet assets, at fair value:      
Home appreciation options | $ $ 339,735 $ 329,883  
Strategic investments | $ 10,123 6,310  
Total Assets | $ 28,818,131 [1] 23,701,114 [1] $ 21,333,020
Liabilities      
Non-controlling interests | $ 92,631 92,644  
Derivatives, net | $ (48,524) (77,447)  
Total liabilities | $ [1] $ 27,884,292 22,718,498  
Securitization entity | securitization 4    
Payable to non-controlling interests | $ $ 119,020 120,177  
VIEs      
On-balance sheet assets, at fair value:      
Total Assets | $ 24,372,361 18,927,094  
Liabilities      
Total liabilities | $ 22,877,902 17,850,175  
Collateralized Financing Entities | VIEs      
On-balance sheet assets, at fair value:      
Total Assets | $ 24,372,361 18,927,094  
Liabilities      
Total liabilities | $ 22,877,902 17,850,175  
Collateralized Financing Entities | HEI | VIEs      
On-balance sheet assets, at fair value:      
Total Assets | $ 199,681 197,118  
Liabilities      
Total liabilities | $ 172,877 171,660  
Level 3      
On-balance sheet assets, at fair value:      
Home appreciation options | $ 339,735 329,883  
Strategic investments | $ 10,123 6,310  
Total Assets | $ 27,886,980    
Liabilities      
Non-controlling interests | $ 92,631 92,644  
Total liabilities | $ 22,608,538    
Level 3 | ABS Issued      
Liabilities      
ABS issued | $ 22,515,907    
Level 3 | Noncontrolling Interest      
Liabilities      
Non-controlling interests | $ $ 92,631    
Level 3 | Minimum | Whole loan discount rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0    
Level 3 | Minimum | Whole loan discount rate | Noncontrolling Interest      
Liabilities      
Non-controlling interest, measurement input 0.12    
Level 3 | Minimum | Default rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0    
Level 3 | Minimum | Loss severity | ABS Issued      
Liabilities      
ABS issued, measurement input 0    
Level 3 | Minimum | Prepayment yield (Annual CPY) | ABS Issued      
Liabilities      
ABS issued, measurement input 0    
Level 3 | Maximum | Whole loan discount rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0.22    
Level 3 | Maximum | Whole loan discount rate | Noncontrolling Interest      
Liabilities      
Non-controlling interest, measurement input 0.15    
Level 3 | Maximum | Default rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0.21    
Level 3 | Maximum | Loss severity | ABS Issued      
Liabilities      
ABS issued, measurement input 0.50    
Level 3 | Maximum | Prepayment yield (Annual CPY) | ABS Issued      
Liabilities      
ABS issued, measurement input 0.53    
Level 3 | Weighted Average | Whole loan discount rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0.01    
Level 3 | Weighted Average | Whole loan discount rate | Noncontrolling Interest      
Liabilities      
Non-controlling interest, measurement input 0.13    
Level 3 | Weighted Average | Default rate | ABS Issued      
Liabilities      
ABS issued, measurement input 0    
Level 3 | Weighted Average | Loss severity | ABS Issued      
Liabilities      
ABS issued, measurement input 0.01    
Level 3 | Weighted Average | Prepayment yield (Annual CPY) | ABS Issued      
Liabilities      
ABS issued, measurement input 0.13    
Residential consumer loans | Level 3      
On-balance sheet assets, at fair value:      
Loans receivable, fair value | $ $ 23,638,696    
Residential consumer loans | Level 3 | Minimum | Senior credit spread to TBA price      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.63    
Residential consumer loans | Level 3 | Minimum | Senior credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0125    
Residential consumer loans | Level 3 | Minimum | Subordinate credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0145    
Residential consumer loans | Level 3 | Minimum | Senior credit support      
On-balance sheet assets, at fair value:      
Loan purchase commitments, measurement input 0.07    
Residential consumer loans | Level 3 | Minimum | IO discount rate      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 0.10    
Residential consumer loans | Level 3 | Minimum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 24    
Residential consumer loans | Level 3 | Maximum | Senior credit spread to TBA price      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 1.44    
Residential consumer loans | Level 3 | Maximum | Senior credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0200    
Residential consumer loans | Level 3 | Maximum | Subordinate credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0675    
Residential consumer loans | Level 3 | Maximum | Senior credit support      
On-balance sheet assets, at fair value:      
Loan purchase commitments, measurement input 0.20    
Residential consumer loans | Level 3 | Maximum | IO discount rate      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 0.20    
Residential consumer loans | Level 3 | Maximum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 105    
Residential consumer loans | Level 3 | Weighted Average | Senior credit spread to TBA price      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.95    
Residential consumer loans | Level 3 | Weighted Average | Senior credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0139    
Residential consumer loans | Level 3 | Weighted Average | Subordinate credit spread to Treasury Curve      
On-balance sheet assets, at fair value:      
Loans held-for-sale, measurement input 0.0262    
Residential consumer loans | Level 3 | Weighted Average | Senior credit support      
On-balance sheet assets, at fair value:      
Loan purchase commitments, measurement input 0.10    
Residential consumer loans | Level 3 | Weighted Average | IO discount rate      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 0.16    
Residential consumer loans | Level 3 | Weighted Average | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 100    
Residential investor term loans | Level 3      
On-balance sheet assets, at fair value:      
Loans receivable, fair value | $ $ 1,796,137    
Residential investor term loans | Level 3 | Minimum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 89    
Residential investor term loans | Level 3 | Minimum | Whole loan spread      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.0220    
Residential investor term loans | Level 3 | Maximum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 99    
Residential investor term loans | Level 3 | Maximum | Whole loan spread      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.0220    
Residential investor term loans | Level 3 | Weighted Average | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 93    
Residential investor term loans | Level 3 | Weighted Average | Whole loan spread      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.0220    
Residential investor bridge loans | Level 3      
On-balance sheet assets, at fair value:      
Loans receivable, fair value | $ $ 1,315,469    
Residential investor bridge loans | Level 3 | Minimum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 69    
Residential investor bridge loans | Level 3 | Minimum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.07    
Residential investor bridge loans | Level 3 | Minimum | Dollar price of loans      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 21    
Residential investor bridge loans | Level 3 | Maximum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 158    
Residential investor bridge loans | Level 3 | Maximum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.12    
Residential investor bridge loans | Level 3 | Maximum | Dollar price of loans      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 105    
Residential investor bridge loans | Level 3 | Weighted Average | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 100    
Residential investor bridge loans | Level 3 | Weighted Average | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 0.07    
Residential investor bridge loans | Level 3 | Weighted Average | Dollar price of loans      
On-balance sheet assets, at fair value:      
Loans held-for-investment, measurement input 86    
HEI | Collateralized Financing Entities | HEI | VIEs      
Liabilities      
Fair value of securities owned | $ $ 27,000    
HEI | Level 3      
On-balance sheet assets, at fair value:      
Home appreciation options | $ $ 339,735    
HEI | Level 3 | Minimum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 158    
HEI | Level 3 | Minimum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
HEI 0.08    
HEI | Level 3 | Minimum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
HEI 0.08    
HEI | Level 3 | Minimum | Home price appreciation (depreciation)      
On-balance sheet assets, at fair value:      
HEI 0.04    
HEI | Level 3 | Maximum | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 158    
HEI | Level 3 | Maximum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
HEI 0.08    
HEI | Level 3 | Maximum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
HEI 0.15    
HEI | Level 3 | Maximum | Home price appreciation (depreciation)      
On-balance sheet assets, at fair value:      
HEI 0.04    
HEI | Level 3 | Weighted Average | Liability price      
On-balance sheet assets, at fair value:      
Loans receivable, measurement input 158    
HEI | Level 3 | Weighted Average | Whole loan discount rate      
On-balance sheet assets, at fair value:      
HEI 0.08    
HEI | Level 3 | Weighted Average | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
HEI 0.14    
HEI | Level 3 | Weighted Average | Home price appreciation (depreciation)      
On-balance sheet assets, at fair value:      
HEI 0.04    
Real estate securities - trading and AFS securities | Level 3      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities | $ $ 480,897    
Real estate securities - trading and AFS securities | Level 3 | Minimum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.04    
Real estate securities - trading and AFS securities | Level 3 | Minimum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0    
Real estate securities - trading and AFS securities | Level 3 | Minimum | Default rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0    
Real estate securities - trading and AFS securities | Level 3 | Minimum | Loss severity      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0    
Real estate securities - trading and AFS securities | Level 3 | Maximum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.22    
Real estate securities - trading and AFS securities | Level 3 | Maximum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.31    
Real estate securities - trading and AFS securities | Level 3 | Maximum | Default rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.89    
Real estate securities - trading and AFS securities | Level 3 | Maximum | Loss severity      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.40    
Real estate securities - trading and AFS securities | Level 3 | Weighted Average | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.09    
Real estate securities - trading and AFS securities | Level 3 | Weighted Average | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.04    
Real estate securities - trading and AFS securities | Level 3 | Weighted Average | Default rate      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.34    
Real estate securities - trading and AFS securities | Level 3 | Weighted Average | Loss severity      
On-balance sheet assets, at fair value:      
Real estate securities - trading and AFS securities, measurement input 0.10    
Servicing Investments | Level 3      
On-balance sheet assets, at fair value:      
Servicing investments | $ $ 290,825    
Servicing Investments | Level 3 | Minimum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.08    
Servicing Investments | Level 3 | Minimum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0    
Servicing Investments | Level 3 | Minimum | Prepayment yield (Annual CPY)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.10    
Servicing Investments | Level 3 | Maximum | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.11    
Servicing Investments | Level 3 | Maximum | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.39    
Servicing Investments | Level 3 | Maximum | Prepayment yield (Annual CPY)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.50    
Servicing Investments | Level 3 | Weighted Average | Whole loan discount rate      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.10    
Servicing Investments | Level 3 | Weighted Average | Prepayment rate (Annual CPR)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.10    
Servicing Investments | Level 3 | Weighted Average | Prepayment yield (Annual CPY)      
On-balance sheet assets, at fair value:      
Servicing asset, measurement input 0.30    
Derivative assets, net | Level 3      
Liabilities      
Derivatives, net | $ $ 15,098    
Derivative assets, net | Level 3 | Minimum | Senior credit spread to TBA price      
Liabilities      
Derivatives, net, measurement input 0.63    
Derivative assets, net | Level 3 | Minimum | Senior credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0125    
Derivative assets, net | Level 3 | Minimum | Subordinate credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0145    
Derivative assets, net | Level 3 | Minimum | Senior credit support      
Liabilities      
Derivatives, net, measurement input 0.07    
Derivative assets, net | Level 3 | Minimum | IO discount rate      
Liabilities      
Derivatives, net, measurement input 0.10    
Derivative assets, net | Level 3 | Minimum | Pull-through rate      
Liabilities      
Derivatives, net, measurement input 0.27    
Derivative assets, net | Level 3 | Maximum | Senior credit spread to TBA price      
Liabilities      
Derivatives, net, measurement input 1.44    
Derivative assets, net | Level 3 | Maximum | Senior credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0200    
Derivative assets, net | Level 3 | Maximum | Subordinate credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0675    
Derivative assets, net | Level 3 | Maximum | Senior credit support      
Liabilities      
Derivatives, net, measurement input 0.20    
Derivative assets, net | Level 3 | Maximum | IO discount rate      
Liabilities      
Derivatives, net, measurement input 0.20    
Derivative assets, net | Level 3 | Maximum | Pull-through rate      
Liabilities      
Derivatives, net, measurement input 1    
Derivative assets, net | Level 3 | Weighted Average | Senior credit spread to TBA price      
Liabilities      
Derivatives, net, measurement input 0.92    
Derivative assets, net | Level 3 | Weighted Average | Senior credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0139    
Derivative assets, net | Level 3 | Weighted Average | Subordinate credit spread to Treasury Curve      
Liabilities      
Derivatives, net, measurement input 0.0264    
Derivative assets, net | Level 3 | Weighted Average | Senior credit support      
Liabilities      
Derivatives, net, measurement input 0.10    
Derivative assets, net | Level 3 | Weighted Average | IO discount rate      
Liabilities      
Derivatives, net, measurement input 0.16    
Derivative assets, net | Level 3 | Weighted Average | Pull-through rate      
Liabilities      
Derivatives, net, measurement input 0.73    
Strategic investments | Level 3      
On-balance sheet assets, at fair value:      
Strategic investments | $ $ 10,123    
Strategic investments | Level 3 | Minimum | Transaction Price      
On-balance sheet assets, at fair value:      
Strategic investments, measurement input 200    
Strategic investments | Level 3 | Maximum | Transaction Price      
On-balance sheet assets, at fair value:      
Strategic investments, measurement input 3,813    
Strategic investments | Level 3 | Weighted Average | Transaction Price      
On-balance sheet assets, at fair value:      
Strategic investments, measurement input 1,125    
Consolidated Sequoia Securitizations      
Liabilities      
Fair value of securities owned | $ $ 1,230,000 722,000  
CAFL      
Liabilities      
Fair value of securities owned | $ 314,000 $ 330,000  
Securitization entity | tranche   2  
At consolidated CAFL Bridge entities      
Liabilities      
Fair value of securities owned | $ $ 70,000 $ 50,000  
[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 June 30, 2026 and December 31, 2025, assets of consolidated VIEs totaled $24,372,361 and $18,927,094, respectively. At June 30, 2026 and December 31, 2025, liabilities of consolidated VIEs totaled $22,877,902 and $17,850,175, respectively. See Note 16 for further discussion.