Redwood Mortgage Investors VIII Changes Auditor to Baker Tilly

What Happened

• Redwood Mortgage Investors VIII, L.P. filed an 8-K reporting that it dismissed BDO USA, P.C. as its independent registered public accounting firm on May 29, 2026 and engaged Baker Tilly US, LLP as its new independent auditor on June 1, 2026.
• BDO’s audit reports for the years ended December 31, 2025 and 2024 were unqualified and were not modified for uncertainty, scope, or accounting principles. The Partnership provided BDO with the 8-K disclosures and BDO’s letter dated June 2, 2026 is included as an exhibit.

Key Details

• Dismissal date: May 29, 2026; new auditor engagement date: June 1, 2026.
• BDO reported no disagreements or reportable events for fiscal years 2025 and 2024 or the interim period through May 29, 2026, except the Partnership had identified a material weakness in internal control over financial reporting related to evaluation of expected credit losses and certain collateral valuations.
• The Partnership (externally managed by Redwood Mortgage Corp.) completed remediation steps and concluded the material weakness was remediated as of December 31, 2025; remediation included hiring personnel and implementing/documenting processes for the current expected credit loss (CECL) model.
• Neither the Partnership nor anyone on its behalf consulted Baker Tilly on accounting or auditing matters for the periods covered (through June 1, 2026).

Why It Matters

• Auditor changes can reflect governance or operational transitions; here, the prior auditor issued clean reports and reported no unresolved disagreements, which reduces immediate red flags for investors.
• The filing discloses a previously identified material weakness in controls over credit-loss evaluation and collateral valuation, but management reports the weakness was remediated as of December 31, 2025 — an important point for assessing the reliability of recent financial statements.
• Investors should note the manager (Redwood Mortgage Corp.) is responsible for internal controls and that a new auditor, Baker Tilly, will review future periods.