Profile: Redwood Trust Inc (RWT.N)
Redwood Trust, Inc., incorporated on April 11, 1994, through its subsidiaries, focuses on investing in mortgage and other real estate related assets. The Company is engaged in mortgage banking activities. The Company operates through three segments: Residential Investments, Residential Mortgage Banking and Commercial. The Company's Residential Investments segment includes a portfolio of investments in residential mortgage-backed securities (RMBS) retained from its Sequoia securitizations, as well as RMBS issued by third parties and other credit risk-related investments. In addition, the Residential Investments segment includes a subsidiary of the Company that is a member of the Federal Home Loan Bank of Chicago (FHLBC) and that utilizes long-term financing from the FHLBC to make long-term investments directly in residential mortgage loans. The Residential Investments segment invests in mortgage servicing rights (MSRs) associated with residential loans that it has sold or securitized, as well as MSRs that it purchased from third parties.
The Company's Residential Mortgage Banking segment consists of operating a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. It acquires prime, jumbo mortgages and the related mortgage servicing rights on a flow basis from its network of loan sellers and distributes those loans through its Sequoia private-label securitization program or to institutions that acquire pools of whole loans. It supplements its flow purchases with bulk loan acquisitions. The Residential Mortgage Banking segment also includes various derivative financial instruments that it utilizes to manage certain risks associated with residential loans it acquires. Its Residential Mortgage Banking segment focuses on mortgage banking activities, which include valuation increases (or gains) on the sale or securitization of loans, and from hedges used to manage risks associated with these activities.
The Company's Commercial segment consists of investments in multi-family securities and commercial mortgage-backed securities, as well as a remaining commercial loan investment following the sale of the remainder of its commercial mezzanine loan portfolio. This Commercial segment's source of revenue is net interest income.
The Company competes with Fannie Mae and Freddie Mac.
Redwood Trust Inc
1 Belvedere Pl Ste 300
MILL VALLEY CA 94941-2493