Redwood Trust(RWT) - 2021 Q4 - Annual Report

Business Segments - The company operates in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio[26] - In Q4 2021, the company reorganized its segments to better reflect management's evaluation of operations, moving retained investments to a newly-created Investment Portfolio Segment[27] - The Residential Mortgage Banking segment primarily generates income from net interest income and gains on loans acquired and sold, with a focus on prime jumbo mortgages[28] - The Business Purpose Mortgage Banking segment originates single-family rental and bridge loans, with income derived from net interest, origination fees, and mark-to-market adjustments[29] - The Investment Portfolio segment includes investments from mortgage banking operations and third-party sources, generating income from net interest and changes in fair value[30] Employee Engagement and Retention - The company employs 298 full-time employees, with 53% directly engaged in operations at its subsidiary, CoreVest[34] - In 2021, the company hired 107 employees, maintaining a low voluntary turnover rate, indicating strong employee retention efforts[36] - 80% of employees reported high engagement levels, and 82% expressed satisfaction with their overall employment experience[37] Diversity and Community Engagement - The company is committed to diversity, equity, inclusion, and belonging, with initiatives aimed at increasing representation and fostering an inclusive work environment[38] - The company actively participates in community giving, supporting causes related to housing, racial equality, and education through corporate grants and employee-led initiatives[39] Risk Management - The Chief Executive Officer and Chief Financial Officer executed certifications as required by the Sarbanes-Oxley Act of 2002 on February 25, 2022[46] - The company actively manages various market risks including credit risk, interest rate risk, and liquidity risk to enhance earnings and preserve capital[545] - The company aims to maintain capital levels consistent with the quantified risks based on historical experience[545] - The company is subject to various types of risks and uncertainties as detailed in the "Risk Factors" section of the Annual Report[546]