Redwood Trust, Inc. is a specialty finance company and internally managed mortgage real estate investment trust (REIT) that operates across the U.S. housing credit sector. The company's business model is centered on providing liquidity to segments of the housing market not adequately served by government-sponsored enterprises. Redwood Trust operates through three primary business segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments.
The Sequoia Mortgage Banking segment operates as a residential consumer mortgage loan conduit, acquiring prime jumbo and other residential loans from third-party originators for subsequent sale, securitization, or transfer into the company's investment portfolio. The CoreVest Mortgage Banking segment focuses on business-purpose residential loans, originating and acquiring financing for real estate investors, including single-family rental (SFR) and bridge loans. The Redwood Investments segment manages the company's organic investments sourced through its mortgage banking operations, holding a diverse portfolio of residential and business-purpose mortgage-backed securities, retained risk from securitizations, and whole loans.
Revenue is primarily generated through net interest income from its investment portfolio and non-interest income derived from mortgage banking activities, including loan sales and securitizations. Redwood Trust distinguishes itself through its established securitization platforms and its strategic venture investment arm, RWT Horizons, which invests in early-stage real estate and financial technology companies to drive innovation within the mortgage ecosystem.
