Redwood Mortgage Investors IX: $29.5M Queue, 9 Loans Past Due

What RMI IX is, and what it is not

RMI IX is a Delaware limited liability company formed in October 2008 “to engage in business as a mortgage lender and investor by making and holding-for-investment mortgage loans secured by California real estate, primarily through first and second deeds of trust” (10-Q). It is managed by Redwood Mortgage Corp. (RMC) and its address in the filings is San Mateo, California. As of February 28, 2026 it had 1,150 unit-holders holding about 62.2 million units at $1 a unit (10-K). In plain numbers, $60.4 million of members’ capital across 1,150 holders is about $52,500 each on average (our arithmetic), so a typical position is a five-figure one, not a small one. It reports to the SEC because it registered its units under Section 12(g) of the Exchange Act, which is why we can read its quarterly numbers at all. The term of the company runs to December 31, 2038 unless members extend it.

The name overlaps with two other Redwood entities we cover. Redwood Trust (RWT) is a listed mortgage REIT and the Redwood Private Real Estate Debt Fund is a registered fund with a quarterly repurchase offer. They file under different CIKs and nothing on this page is about them.

How a redemption works here

The Operating Agreement, as the 10-Q describes it, sets three limits and one order of priority.

Two sentences in the 10-Q set the practical limit. “The company has not established a cash reserve from which to fund redemptions.” And: “The company’s capacity to redeem units upon request is limited by the availability of cash and the company’s cash flow.” On waiving the caps, the filing says: “The manager has no present intention to exercise its discretionary power to waive or modify the enforcement of the redemption limitations in the foreseeable future.” There is also no way around the program: the 10-K says there is “no secondary market” for the units.

The queue, quarter by quarter

Each quarterly report states the redemption requests received and not yet paid. Requests are carried forward “until paid.” The table joins that figure to gross members’ capital at the same date, and the last column is our division of the two.

At December 31, 2022 the unpaid requests were $232 thousand (10-K), so the queue went from $232 thousand to $29.5 million in 3.5 years. At June 30, 2026 the unpaid requests were $29.5 million against $60.4 million of members’ capital. The jump of $2.8 million in the second quarter is the biggest since the last quarter of 2024, and the new requests of $2.9 million were the largest since the third quarter of 2024 ($4.2 million) (our reading of the table). One caution on the arithmetic: the components in the filings do not add exactly. Taking the March 31 total of $26.7 million, adding $2.9 million of new requests and subtracting the $783 thousand paid gives $28.8 million, not $29.5 million (our arithmetic). We use the totals as filed.

Payments, and how long the queue is

Redemptions paid in 2025 were 5.1% of average daily members’ capital of $64,650 thousand, and $783 thousand in the second quarter of 2026 was 1.28% of the quarter’s average of $61,119 thousand (our arithmetic). The caps are measured on weighted average units over the prior 12 months, which the filings do not give, so we cannot say to the dollar whether the fund paid the maximum. The payments are close to what the caps imply.

Three worked examples, all our arithmetic:

• The whole queue. $29.5 million divided by the first-half 2026 pace of $1,582 thousand every six months is 9.3 years, with no new request added. The term of the company ends December 31, 2038, about 12 years away.
• One member, pro rata. The 10-Q says eligible requests that are not death redemptions are paid pro rata. If the $783 thousand paid in the second quarter was spread across the $26.7 million of requests unpaid on March 31, each request received about 2.9% of its amount in the quarter. A $100,000 request would get about $2,900, and it would take about 34 quarters at that rate (100 / 2.93). The real pace would be slower if new requests keep joining the queue. The filings do not publish the allocation arithmetic, so treat this as an illustration, not a forecast.
• What the fund did with its cash. In the first half of 2026 it funded $10,966 thousand of new loans and paid $1,582 thousand of redemptions, 6.9 times as much in new loans as in redemptions (our arithmetic). Principal collected was $11,480 thousand, loans sold to an unaffiliated third party brought in $3,384 thousand and sales of real estate owned brought in $1,065 thousand. Cash rose from $562 thousand on December 31, 2025 to $5,808 thousand on June 30, 2026, which is 20% of the queue (our arithmetic). The 10-Q does not explain the choice; it is within the caps, which the manager controls.

The loans: nine past due, eight matured

The delinquency table in the 10-Q splits the book by days late.

Past due is 36.6% of principal, the same as the 36.9% at December 31, 2025, when 11 loans and $21,475 thousand were past due. The loans are small in number, so one loan moves the ratio: the largest, in San Diego County, is $7.4 million, 13.9% of all principal (our arithmetic). The history:

The 10-Q names the nine loans by city and property, not by borrower. The principal below is the 10-Q’s figure for each loan; the nine add to $19,581 thousand against the $19,533 thousand in the table, a rounding difference in the filing (our sum).

Two things stand out. Three of the nine loans are paying monthly or have been brought current by an agreement, so “past due” covers cases that are being worked out as well as cases heading to foreclosure. And a loan can be listed as past due on the arrears table while the scheduled-maturity table, which follows forbearance agreements, treats it differently, a difference the filing itself flags. We use the arrears table throughout.

On collateral, the weighted average loan-to-value at origination was 54.6% on first liens and 55.5% on second liens. Updated loan-to-value (principal, advances and unpaid interest over current value estimates) was under 80% on 97.1% of principal, and $1,590 thousand, or 2.9%, was at 80% or more. Both loans at 80% or more are in the past-due group. Appraisal dates matter, though, and some are old: the 10-Q gives August 2022 for the Livermore condominium and October 2019 for the Los Angeles multi-family building.

The schedule of maturities says where the next pressure is. Of $53.3 million, the 8 matured loans are 33%; $23.0 million (43%, 14 loans) matures in 2027, $4.1 million in 2028, $5.2 million in 2029, $2.7 million in 2030 and $0.6 million after that. Twenty-three of the 31 loans are interest-only, $47.2 million, with principal due at maturity. The 10-Q says the fund “renewed no maturing (or matured) loans in the six months ended June 30, 2026.”

The bank line: how a late loan closes the credit

RMI IX has a revolving line with Western Alliance Bank. On March 11, 2026 it signed a Third Loan Modification Agreement (8-K filed March 17, 2026) that moved the maturity from March 13, 2026 to March 13, 2028 and added a $1 million minimum liquidity covenant. The line is up to $10 million, advances may be used only to fund secured loans, and interest is the greater of one-month Term SOFR plus 3.5% and 6.0%. The 8-K and the 10-Q then set the trigger: if the delinquency rate exceeds 10.0% at the end of two consecutive quarters, or exceeds 20% at the end of any quarter, the bank stops making advances until the company complies, and agrees not to accelerate repayment as long as there is no event of default, while reserving the right to do so on any additional event of default.

The 10-Q says: “As the company was not in compliance with this covenant, it could not access the credit agreement for any additional borrowings as of June 30, 2026.” The measure is defined by the credit agreement, as the principal of loans more than 61 days past due “as determined by the bank’s guidance,” less loan loss allowances, over total principal, so it differs from the past-due table above and we do not try to reconcile the two. The line has $1.9 million drawn, none at the start of 2026. The same covenant list includes a minimum tangible net worth of $50 million, net of amounts due from related companies, and a debt service coverage ratio of at least 2.00 to 1.00. The 10-Q gives no figure for those two tests; we did not compute them.

The 10-Q also says new lending is restricted: loan originations fell about $4.0 million in the half-year “primarily” because of timing of payoffs and “the limitation of new draws on the line of credit until the company’s loan payment delinquency rate is compliant with the covenants of the credit agreement.”

Income, distributions and reserves

The fund’s earnings have fallen with the loan book and the late loans.

Net income rose in the first half of 2026 because the average loan balance rose from $47.0 million to $56.9 million, but distributions fell 27% (from $1,384 thousand to $1,013 thousand, our arithmetic). Four loans, $6,955 thousand of principal, were on non-accrual at June 30, 2026 ($7,311 thousand at the end of 2025) and the fund recognized $79 thousand of interest on them in the half. The allowance for credit losses was $580 thousand after a $295 thousand charge-off tied to a foreclosure, and three loans with principal of $6.3 million were deemed collateral dependent. A $309 thousand gain on a sale of real estate owned helped the second quarter.

Late filings and a new auditor

Three events in 2026 are not about loans. The fund filed NT 10-K on March 31 and the 10-K on April 14, 2026. On April 24 an 8-K reported that RMC had dismissed BDO USA, P.C. on April 22; the 8-K says BDO’s reports for 2025 and 2024 contained no adverse opinion or disclaimer and that there were no disagreements. It reports one exception: a material weakness in internal control over the fund’s estimate of expected credit losses, including the current fair value of collateral, which the 10-K says was remediated as of December 31, 2025. On May 7, 2026 a second 8-K reported that Baker Tilly US, LLP was engaged that day, and said the April report’s engagement date “should be disregarded.” The fund then filed NT 10-Q on May 18 and its first-quarter 10-Q on May 20. The 10-Q for June 30 was filed on August 14, 2026, the day it was due.

None of this is a finding of wrongdoing. A change of auditor, two late notices and a reserve that is 3.0% of past-due principal are things a holder can ask about; the filings do not answer them.

What a reader can do with this

This page does not tell anyone to hold or redeem. It lists what the filings let a holder check.

• Find your own place in the queue. The caps and the pro rata rule are fund-wide; your position depends on the date of your request, which the 10-Q does not publish. Ask RMC in writing for your request amount, the date it became eligible and what share of it has been paid.
• If a member has died. Death redemptions are paid first, up to $100 thousand a quarter per deceased member’s account, then the rest pro rata. Our page on death and disability repurchases covers how these rules work for heirs in non-traded funds.
• If the units are in an IRA. The only priority the 10-Q lists is death. It does not mention required minimum distributions. See RMDs from illiquid IRA assets for how the rule treats an asset you cannot sell.
• Read the next 10-Q on five lines. Unpaid requests (was $29.5 million), loans past due (was nine, $19,533 thousand), the credit-agreement delinquency rate (was 28.51%), cash (was $5,808 thousand) and sales of loans or real estate owned (the second quarter had $309 thousand of gain). The report for September 30, 2026 is due about November 16, 2026.
• Compare it with other ways to be paid back. Private credit fund redemption trackers, real estate crowdfunding liquidity and real estate debt options show how other vehicles handle exits.
• Keep the tax side separate. Whether a redemption produces a gain, a loss or a return of capital depends on your basis and your capital account, which only your own statements show.

This is analysis of public documents, not investment, legal or tax advice.

FAQ

All figures are from Redwood Mortgage Investors IX, LLC’s SEC filings, read on November 3, 2026: the 10-K for 2025 (accession 0001193125-26-154932) and for 2024, 2023 and 2022 (accessions 0000950170-25-057997, 0000950170-24-045202 and 0000950170-23-011406); the 10-Qs for June 30 and March 31, 2026 (0001193125-26-351760 and 0001193125-26-232453), for the 2025 quarters (0000950170-25-075620, 0000950170-25-109980 and 0001193125-25-277660), for the 2024 quarters (0000950170-24-060594, 0000950170-24-096816 and 0000950170-25-047979) and for September 30, 2023 (0000950170-23-063633); the 8-Ks of March 17, April 24 and May 7, 2026 (0001193125-26-111145, 0001193125-26-177632 and 0001193125-26-212421); and the late-filing notices of March 31 and May 18, 2026 (0001193125-26-134638 and 0001193125-26-227509). The fund’s latest filing on EDGAR is the 10-Q of August 14, 2026. Quarterly redemption payments, ratios, the years-to-clear estimates, the pro rata illustration and sums are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.