Redwood
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company and real estate investment trust headquartered in Mill Valley, California, focused on residential and commercial mortgage investments. Founded in 1994, Redwood is a pioneer in the non-agency residential mortgage market, having established itself as one of the first and most respected securitizers of jumbo and non-conforming residential mortgage loans. The firm invests in residential mortgage loans, residential mortgage-backed securities, home equity investments, and business purpose loans secured by residential real estate, as well as commercial real estate bridge loans and other real estate credit instruments.
Redwood's business model combines proprietary mortgage loan acquisition and origination capabilities with a sophisticated capital markets structuring and distribution platform. The firm originates and acquires residential jumbo mortgage loans through its network of correspondent lenders and broker relationships, packages them into securities for distribution to institutional investors, and retains selective portions of the risk within its investment portfolio. Redwood's Residential Mortgage Banking segment focuses on acquiring and distributing conforming and non-conforming residential loans, while its investment portfolio segment retains higher-yielding portions of its loan and securities portfolios.
Redwood Trust has established itself as a leading specialty finance company in the non-agency residential mortgage market, known for its deep expertise in mortgage credit, disciplined risk management, and track record of navigating multiple credit cycles in the residential mortgage sector. The firm's REIT structure provides tax-advantaged income distributions to shareholders, while its focus on the residential mortgage credit market provides differentiated exposure to real estate credit that is distinct from traditional commercial real estate debt or equity investments. Redwood's continued leadership in non-agency mortgage lending and its innovative development of alternative mortgage products — including Home Equity Investment structures — position it as a creative and disciplined participant in the evolving residential credit landscape.